India, July 16 -- The Union cabinet on Wednesday approved a Rs.62,500 crore Mobile Phone Manufacturing Scheme (MPMS) to deepen mobile manufacturing in India, which is now the world's second-largest mobile phone manufacturer.

The scheme lands amid an accelerating shift for the industry as multinational manufacturers build capacity outside China to hedge against geopolitical risk and tariff exposure. India has emerged as the principal beneficiary, in part also due to the government's incentives for the electronics sector.

The MPMS, planned over a five-year period running from fiscal 2026-27 to fiscal 2030-31, is expected to be notified within 20 days.

Calling it a "massive boost to 'Make in India' and our electronics manufacturing ecosys...