Motilal Oswal reported that the Mobile Phone Manufacturing Scheme (MPMS)
GS3Economy · S&T · Environment · Security· Industry, investment & MSMEs· Prelims·
Why in news
Motilal Oswal reported on the Mobile Phone Manufacturing Scheme (MPMS) designed to boost domestic production and export volumes through fiscal incentives.
Background
The MPMS has an incentive outlay of Rs 62,500 crore from FY26 to FY31. Incentives range from 2.25% to 5.0%, with additional 1.5% for domestic component sourcing and up to 8% for selected Indian mobile brands.
Facts for Prelims
- FactMPMS incentive outlay: Rs 62,500 crore for the period FY26 to FY31
- FactIncentive range: 2.25% to 5.0% based on turnover and incremental sales
- FactMinimum turnover threshold: Starts at Rs 5,000 crore in FY27, rising annually
- FactDomestic sourcing incentive: Additional up to 1.5% for key components
- FactIndian brand support: Up to 8% for brands selected by the Empowered Committee
For Mains
Q. Discuss how production-linked incentive schemes like MPMS contribute to India's goal of becoming a global manufacturing hub and reducing import dependency.
Dimensions to cover in your answer
- backward integration
- export-led growth
- MSME integration
- fiscal sustainability
Keywords: backward integration · import substitution · manufacturing hub · fiscal incentives · export-led growth
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