New Delhi, July 15 -- The Union Cabinet on Wednesday approved a Rs.62,500 crore Mobile Phone Manufacturing Scheme (MPMS) aimed at scaling up domestic mobile phone production, deepening local value addition and strengthening India's position as a global electronics manufacturing hub.

Chaired by Prime Minister Narendra Modi, the Cabinet cleared the scheme with a five-year tenure from FY2026-27 to FY2030-31.

The scheme succeeds the Production Linked Incentive Scheme for Large Scale Electronics Manufacturing (PLI-LSEM), which ended on March 31, 2026.

Under the scheme, companies manufacturing mobile phones in India will receive production-linked incentives ranging from 2.25% to 5% on eligible sales.

Manufacturers can also claim an addition...