India, July 15 -- In a bid to boost mobile phone manufacturing in the country, the Union Cabinet approved a Mobile Phone Manufacturing Scheme (MPMS) with a budgetary outlay of Rs.62,500 Cr. The scheme, which will have a five year tenure till FY31, aims to boost phone manufacturing by offering incentives of up to 5% on eligible sales and additional benefits for domestic sourcing and research and development (R&D).

Companies can also claim an additional incentive of up to 1.5% for sourcing key components and sub-assemblies domestically.

In a push to build homegrown smartphone brands, the Centre will offer an additional 3% incentive on eligible sales for product design and R&D.

The government expects the scheme to drive cumulative mobile ...