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22 August 2026

Government Notifies Mobile Phone Manufacturing Scheme Incentives

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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

PYQ trend

When UPSC asked this

Related PYQs from other years, newest first. Open a question to read it.

  1. 2016 · Q48 · General Studies · 2 marks

    With reference to 'Initiative for Nutritional Security through Intensive Millets Promotion', which of the following statements is/are correct? 1. This initiative aims to demonstrate the improved production and post-harvest technologies, and to demonstrate value addition techniques, in an integrated manner, with cluster approach. 2. Poor, small, marginal and tribal farmers have larger stake in this scheme. 3. An important objective of the scheme is to encourage farmers of commercial crops to shift to millet cultivation by offering them free kits of critical inputs of nutrients and micro-irrigation equipment. Select the correct answer using the code given below

    View answer →

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