New Indian phones in 10-14 months? 5 things to know about the government’s smartphone push

The Indian government is accelerating its efforts to cultivate a robust domestic smartphone industry, aiming to produce innovative devices within the next decade. Union Minister Ashwini Vaishnaw has revealed plans to expand manufacturing operations beyond Apple's iPhones, reflecting the administration's commitment to fostering a thriving homegrown smartphone ecosystem.

Key components of the government's initiative include the Mobile Phone Manufacturing Scheme, or MPMS, which offers incentives for companies developing original Indian smartphone designs and technologies.

To qualify for government support, these new brands must create their own designs and prove ownership of their intellectual property. The MPMS, approved by the Union Cabinet in July with a budget of ₹62,500 crore, is specifically designed to encourage the development of Indian brands that can compete in various smartphone segments.

Three Indian companies, including Lava International and Ai, are among those already claiming local smartphone design capabilities, potentially playing a significant role in the government's push.

The new manufacturing push also aims to increase the use of domestically produced components, such as display modules, camera modules, enclosures, batteries, and USB cables with connectors. Companies utilizing Indian-made components will be eligible for additional incentives ranging from 0.2% to 0.5%. Overall, the government's strategy seeks to enhance the value derived from the smartphone supply chain, moving away from merely assembling devices and toward developing products with home-grown design capabilities and technology.