CURRENT AFFAIRS | 30 JULY 2026
The Union Cabinet has approved the Mobile Phone Manufacturing Scheme (MPMS) with a substantial outlay of Rs 62,500 crore. Running for five years from FY 2026-27 to FY 2030-31, the scheme aims to deepen domestic value addition, strengthen the electronics supply chain, and nurture Indian mobile brands with indigenous design and R&D.
From assembling phones to building components
India already assembles a large share of the smartphones it consumes, thanks to the earlier smartphone Production Linked Incentive (PLI). The MPMS is its successor, but with a sharper target: the “missing middle” of the value chain — components and sub-assemblies such as displays, camera modules, batteries and printed circuit boards that India still imports heavily. By localising these, the scheme seeks to raise domestic value addition and reduce import dependence.
Policy & Conceptual Framework
The MPMS sits within the Production Linked Incentive (PLI) family of schemes, which reward manufacturers for incremental production or sales rather than for merely setting up capacity. It advances the twin goals of Make in India and Atmanirbhar Bharat (self-reliance), and works through the concept of import substitution — replacing imported inputs with domestically produced ones. The policy is steered by MeitY (Ministry of Electronics and IT) and DPIIT, and links India more firmly into global value chains in electronics manufacturing services (EMS).
Why electronics, and why now
Electronics is among India’s fastest-growing manufacturing sectors. Deepening the component ecosystem creates jobs, cuts the import bill, and builds resilience against supply-chain shocks. The MPMS also complements the Semicon 2.0 semiconductor mission (outlay ~Rs 1.275 lakh crore) approved the same week — phones and chips being two ends of the same electronics ambition.
The CLAT Angle — why it matters for the exam
Flagship central schemes are a GK staple: examiners routinely test the scheme name + outlay + implementing ministry. MPMS adds an economics layer through the concept of domestic value addition and the PLI mechanism. Pairing MPMS (phones, Rs 62,500 cr) with Semicon 2.0 (chips, Rs 1.275 lakh cr) is an easy “match the outlay” trap to watch for.
Key Facts
| Scheme | Mobile Phone Manufacturing Scheme (MPMS) |
| Outlay | Rs 62,500 crore |
| Duration | FY 2026-27 to FY 2030-31 (5 years) |
| Focus | Components & sub-assemblies (value addition) |
| Predecessor | Smartphone PLI |
| Complements | Semicon 2.0 (~Rs 1.275 lakh cr) |
Memory Hook
“MPMS Rs 62,500 cr — phones; Semicon 2.0 Rs 1.275 lakh cr — chips.” Two schemes, one electronics dream: one makes the handset, the other makes the brain inside it.
The bigger picture
By moving up the value chain from assembly to components, the MPMS is a bet on turning India from a phone assembler into a phone maker. If it succeeds, more of every rupee spent on an Indian-sold phone will stay within the domestic economy — the essence of Atmanirbhar Bharat in high-tech manufacturing.
Practice Quiz — 10 CLAT-Style Questions
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