MeitY notifies Rs 62,500 Cr mobile manufacturing scheme

The Ministry of Electronics and Information Technology has notified a Rs 62,500 Cr Mobile Phone Manufacturing Scheme. It runs for five years, across FY27 to FY31.

The scheme offers incentives to mobile phone manufacturers and to electronics manufacturing services providers. It carries enhanced support for Indian owned brands that do their design and R&D in India.

Eligibility in the manufacturing segment is set high. A company must be registered in India with a minimum FY26 turnover of Rs 10,000 Cr. Existing brands need Rs 5,000 Cr in incremental annual sales. New brands become eligible once they reach Rs 10,000 Cr in India sales.

The Indian brand segment runs a different test. Minimum FY26 turnover of Rs 1,000 Cr, incorporation in India, intellectual property and trademarks held domestically, management control with Indian citizens, and 51 percent or more shareholding held by Indian citizens.

It succeeds the production linked incentive scheme for large scale electronics manufacturing, whose tenure ended on 31 March 2026. FY27 starts on 1 April 2026, so one scheme hands over to the next.

The operator read

Skip the headline number. The real story is the Indian brand segment conditions. The 51 percent citizen shareholding floor and the domestic intellectual property requirement are not paperwork. They are industrial policy written to separate Indian owned brands from foreign owned brands that assemble here.

That changes what “Indian brand” means commercially. Until now it has been a claim on a product page with nothing behind it. Now there is a government test with a number attached to it. Expect qualifying brands to say so on packaging, in A plus content and in tender documents. Expect procurement teams and marketplace category managers to start asking which definition you actually meet. If your cap table has crossed the foreign ownership line, your positioning has quietly become a compliance question rather than a copy question.