Phone makers face a Rs 10k cr entry ticket for PLI
The Indian government has introduced the Mobile Phone Manufacturing Scheme (MPMS) with a Rs 10,000 crore entry fee for companies meeting specific turnover requirements. Mobile phone manufacturers and electronics contract manufacturers with a turnover of Rs 10,000 crore in FY26 will be eligible for incentives under the Rs 62,500-crore scheme.
The MPMS aims to provide production-linked incentives for manufacturing mobile phones in India over a five-year period starting from the current fiscal year. Existing brands must meet the minimum sales threshold of Rs 5,000 crore every year above their FY26 turnover to be eligible for benefits. New brands must achieve total annual sales of Rs 10,000 crore in India to qualify for the scheme.
The incentive rates vary over the five-year period, with 2.75 percent in FY27 and FY28, 2.5 percent in FY29 and FY30, and 2.25 percent in FY31. Additional incentives of up to 1.5 percent will be provided on domestic sourcing of components such as display modules, batteries, and USB cables. The scheme will be implemented through a project management agency, with guidelines for its implementation to be issued separately by the Ministry of Electronics and Information Technology.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
