Scaling Domestic Electronics Manufacturing: An Analysis of the Mobile Phone Manufacturing Scheme

The Ministry of Electronics and Information Technology (MeitY) has officially notified the Mobile Phone Manufacturing Scheme (MPMS), marking a significant policy pivot in India’s electronics sector. With a substantial financial outlay of ₹62,500 crore, the scheme is designed to address the structural limitations of India’s current electronics ecosystem, which has historically relied heavily on the assembly of imported components (SKD - Semi Knocked Down kits). The core objective of the MPMS is to catalyze a transition toward 'deep-value addition.' By incentivizing the domestic production of critical sub-assemblies and components, the government aims to integrate India more firmly into the Global Value Chain (GVC). A notable feature of this policy is the targeted support for Indian-owned brands. While previous iterations of manufacturing incentives primarily benefited global original equipment manufacturers (OEMs), this scheme seeks to create a level playing field for domestic players, fostering an indigenous ecosystem that can compete on both cost and quality.