• The central government has approved the ₹62,500 crore MPMS (Mobile Phone Manufacturing Scheme).
• Additional incentives will be given to companies to promote mobile manufacturing, local components and R&D in India.
• While there is no official announcement that the smartphone will be cheaper at the moment, the prices are likely to come down in the future if the manufacturing costs come down.

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What is the government’s new MPMS scheme?

In fact, the new MPMS scheme will replace the earlier Production Linked Incentive i.e. PLI scheme, which was phased out in March 2026. The government has approved a budget of Rs 62,500 crore for this scheme. Companies will get a production-linked incentive of 2.25% to 5% on the sale of mobile phones under this scheme. Companies that use more components and sub-assemblies manufactured in India will be given a higher incentive of up to 1.5 percent. (Photo Courtesy: Pinterest)

Along with this, the government aims to promote domestic smartphone brands. An additional incentive of up to 3 percent will also be given to Indian companies that invest in research and development (R&D) and their product design. This will help Indian companies to develop new technologies and establish their position in the global market. In this regard, Prime Minister Narendra Modi has also shared a post on his X account.

The post says, ‘Make in India’ and a big boost to our electronics manufacturing ecosystem! The Cabinet’s approval of the Mobile Phone Manufacturing Scheme with a provision of Rs 62,500 crore will increase production, deepen domestic value addition, strengthen supply chains and create a globally competitive ecosystem in India. In the coming years, the scheme is expected to generate many employment opportunities for the youth.

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Will smartphones become cheaper?

Currently, no official statement has been issued on whether the smartphone prices will drop or not. But if companies start manufacturing more components in India and imports are reduced, their production costs can also come down. This may also reduce the prices of some smartphones in the future. In addition, this month the government also removed customs duties on some imported parts used in smartphone manufacturing, which could further reduce production costs for companies.