← Previous article

22 August 2026

Government Notifies Mobile Phone Manufacturing Scheme Incentives

Show this topic for:

Why in news

  • Union Government notified a dedicated mobile phone manufacturing scheme offering targeted incentives for domestic brands.

What is the scheme?

  • A successor framework building on the earlier Production Linked Incentive (PLI) Scheme for Large Scale Electronics Manufacturing (2020–2025).
  • Administered by the Ministry of Electronics and Information Technology (MeitY).

Key provisions

  • Offers graded financial incentives tied to incremental sales and local value addition.
  • Before: Legacy PLI focus was broadly split between global contract manufacturers and domestic firms.
  • After: Higher incentive slabs are earmarked for domestic Indian brands to strengthen local IP and supply chain depth.

Why it matters

  • Promotes backward integration, sub-assembly manufacturing, and creation of domestic champion enterprises.

Key terms

Value Addition

The increased percentage of component procurement and manufacturing done locally relative to total product cost.

Prelims facts

  • MeitY implements production-linked incentive schemes for hardware and electronics manufacturing.

Mains discussion

  • Challenges in moving from electronics assembly to local value addition and domestic component manufacturing.

Source: The Hindu

Same topic · past papers

UPSC has asked this before

These previous-year questions sit on the same topic. Open one to practise the earlier ask.

  1. 2018 · Q55 · General Studies · 2 marks

    In which of the following areas can GPS technology be used? 1. Mobile phone operations 2. Banking operations 3. Controlling the power grids Select the correct answer using the code given below:

    View answer →

  2. 2016 · Q55 · General Studies · 2 marks

    What is 'Greenhouse Gas Protocol'?

    View answer →

  3. 2023 · Q38 · General Studies · 2 marks

    Consider the following statements: Once the Central Government notifies an area as a 'Community Reserve' 1. the Chief Wildlife Warden of the State becomes the governing authority of such forest 2. hunting is not allowed in such area 3. people of such area are allowed to collect non-timber forest produce 4. people of such area are allowed traditional agricultural practices How many of the above statements are correct?

    View answer →

  4. 2018 · Q10 · GS IV · 20 marks

    Case study. A big corporate house is engaged in manufacturing industrial chemicals on a large scale. It proposes to set up an additional unit. Many states rejected its proposal due to its detrimental effect on the environment. But one state government acceded to the request and permitted the unit close to a city, brushing aside all opposition. The unit was set up 10 years ago and was in full swing till recently. The pollution caused by the industrial effluents was affecting the land, water, and crops in the area. It was also causing serious health problems to human beings and animals. This gave rise to a series of agitations demanding the closure of the plant. In a recent agitation, thousands of people took part, creating a law and order problem necessitating stern police action. Following the public outcry, the State government ordered the closure of the factory. The closure of the factory resulted in the unemployment of not only those workers who were engaged in the factory but also those who were working in the ancillary units. It also very badly affected those industries which depended on the chemicals manufactured by it. As a senior officer entrusted with the responsibility of handling these issues, how are you going to address it? (250 words).

    View answer →

  5. 2025 · Q7 · GS IV · 20 marks

    Case study. Vijay was Deputy Commissioner of remote district of Hilly Northern State of the country for the last two years. In the month of August heavy rains lashed the complete state followed by cloud burst in the upper reaches of the said district. The damage was very heavy in the complete state especially in the affected district. The complete road network and telecommunication were disrupted and the buildings were damaged extensively. People's houses have been destroyed and they were forced to stay in open. More than 200 people have been killed and about 5000 were badly injured. The Civil Administration under Vijay got activated and started conducting rescue and relief operations. Temporary shelter camps and hospitals were established to provide shelter and medical facilities to the homeless and injured people. Helicopter services were pressed in, for evacuating sick and old people from remote areas. Vijay got a message from his hometown in Kerala that his mother was seriously sick. After two days Vijay received the unfortunate message that his mother has expired. Vijay has no close relative except one elder sister who was US citizen and staying there for last several years. In the meantime, the situation in the affected district deteriorated further due to resumption of heavy rains after a gap of five days. At the same time, continuous messages were coming on his mobile from his hometown to reach at the earliest for performing last rites of his mother. (a) What are the options available with Vijay?(b) What are the ethical dilemma being faced by Vijay?(c) Critically evaluate and examine each of these options identified by Vijay.(d) Which of the options, do you think, would be most appropriate for Vijay to adopt and why?

    View answer →

← All Prelims + Mains notes for 22 August 2026

PDF