Cabinet Approves Next-Phase Mobile and Semiconductor Schemes to Boost Domestic Manufacturing.

The Union Cabinet recently approved a ₹62,500-crore Mobile Phone Manufacturing Scheme (MPMS) to accelerate localisation, domestic design capabilities and high-tech manufacturing in India over the next five years.

The new scheme will be implemented from financial year 2026-27 to 2030-31 and will replace the Production Linked Incentive Scheme for Large Scale Electronics Manufacturing (PLI-LSEM), which concluded on March 31, 2026.

Through the revamped framework, the government aims to drive cumulative mobile phone production worth ₹39 lakh crore during the scheme period, with a focus on moving India beyond a volume-driven export model towards a higher-value technology manufacturing ecosystem.

The Cabinet, chaired by Prime Minister Narendra Modi, also approved ‘Semicon 2.0’ to strengthen India’s semiconductor design and manufacturing ecosystem. The initiative carries a total budget outlay of ₹1.27 lakh crore and is aimed at advancing domestic chip capabilities.

Together, the two initiatives mark a major expansion of the government’s efforts to build self-reliance in electronics and semiconductor manufacturing.