New Delhi, July 20 -- A 3% incentive on sales of mobile phones designed, patented, built and sold in India carries high expectations, with the Centre hoping it will encourage private firms to invest in research and development rather than remain focused on low-value assembly.

The additional incentive that a local mobile phone brand can earn from the Centre over the next five years can allow electronics manufacturers to invest in aspects beyond manufacturing, which in turn would be key to creating a mobile phone brand in the country, S. Krishnan, secretary at the ministry of electronics and IT (Meity), told Mint in an interview.

"The 'made in India' brand incentives are where we will try to push companies to invest in research or increas...