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Cabinet Approves ₹62,500 Cr Mobile Manufacturing Scheme with 5% Incentive for Indian Brands

Target:UPSC GS-IIIMPSCSSC GATeachingPrelims HighMains HighStatic GK Link
15 Jul 2026
~2 min
Source: Indian Express
Key Data:₹62,500 crore5 years₹39 lakh crore60,000 jobs2.25% to 5%1.5%
Bodies:Union CabinetICEA
Practice MCQs from today's news ▸
What This Article Covers

1.Cabinet approves a ₹62,500 crore mobile phone manufacturing scheme for 5 years as a follow-on to the PLI scheme.

2.Scheme offers differentiated incentives (2.25% to 5%) on sales, with extra 1.5% for domestic sourcing and 3% for Indian brand R&D.

3.Targets cumulative production of ₹39 lakh crore and 60,000 direct jobs, building on PLI's success of ₹22 lakh crore production and 2 lakh jobs.

The Big Picture
Prelims · HighMains · High

The Union Cabinet has cleared a ₹62,500 crore follow-on scheme to the PLI for mobile phones, with a sharp focus on boosting Indian brands, domestic value addition, and exports. This is a high-impact industry policy that aims to make India a global hub for mobile phone manufacturing.

Exam Lens

Quick Exam Facts From News

Scheme Outlay₹62,500 crore
Duration5 years
Production Target₹39 lakh crore (cumulative)
Direct Job Target60,000
Incentive Rate Range2.25% to 5% on eligible sales
Extra Incentive for Domestic SourcingUp to 1.5%
Extra Incentive for Indian Brand R&D3% on eligible sales
Current Local Value Addition (India)24%
Current Local Value Addition (China)38%
PLI Disbursement (Previous)₹19,000 crore
Direct Tax Collected (Previous)₹25,000 crore
GST Collected (Previous)₹3 lakh crore
Investment (Previous)₹20,000 crore (3x target)
Smartphone Production (Previous)₹11,61,581 crore (142% of target)

1-Minute Revision

  • ›Scheme Outlay: ₹62,500 crore
  • ›Duration: 5 years
  • ›Target this Data: ₹62,500 crore outlay, 5-year duration, 60,000 direct jobs target, ₹39 lakh crore production target.
  • ›Target this Nodal Body: Union Cabinet (approval), Ministry of Electronics & Information Technology (MeitY) - though not explicitly named, it is the implementing ministry.
  • ›Target this Incentive Structure: 2.25% to 5% base rate + 1.5% domestic sourcing + 3% Indian brand R&D.

Mastered this topic? Test your knowledge with a full MCQ quiz.

Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

Which Union Ministry is primarily responsible for implementing the mobile phone manufacturing scheme approved by the Cabinet?

Q2Statement-basedHard

Consider the following statements regarding the new mobile phone manufacturing scheme:

1. The scheme provides a uniform incentive rate of 5% on eligible sales for all manufacturers.

2. An additional incentive of up to 1.5% is linked to domestic sourcing of key components.

3. The scheme aims to create 60,000 direct jobs in mobile manufacturing.

Which of the statements given above is/are correct?

Q3Data-centricMedium

What is the cumulative production target (in ₹) set for the new mobile phone manufacturing scheme over its tenure?

Q4Application/ImpactMedium

What is the primary strategic objective of providing an additional 3% incentive for design and R&D by Indian brands under the new scheme?

All 25 MCQs ▸
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