Mobile phone manufacturing scheme to boost backward integration: Industry
New Delhi, Aug 22 (IANS) The recently approved Mobile Phone Manufacturing Scheme (MPMS) will accelerate local value addition, reduce supply‑chain dependencies and boost backward integration, industry leaders said on Saturday.
They noted that approvals under the Electronics Components Manufacturing Scheme have moved from paper to production, with 106 approved projects, 38 operational plants and 16 more in advanced stages of construction.
“This is exactly the momentum IESA had called for when we said the next phase must focus on scaling up, building strong design teams, local sourcing, and world-class quality — and today’s numbers show that shift is already underway,” said Ashok Chandak, President, SEMI India and IESA.
India being historically dependent on imported components—from multilayer PCBs and display modules to sensors and relays—shows clear intent that it is no longer a market for the world but repositioning itself as a production hub for the world, Chandak said.
The shift in vision is proved by the “approval of 31 additional proposals under the Electronics Components Manufacturing Scheme (ECMS) with projected investment of Rs 6,844 crore in less than 5 months of approving 75 applications involving investment of Rs 61,671 crore,” he added.
The projects span from first-ever domestic manufacturing of critical components like filters, coils and speakers, along with essential raw materials such as acetylene black and electrolyte additives.
The scale precisely reflects the shift from an assembly-led model to a components-and-materials-led model that builds genuinely indigenous electronics products, with Indian IP, Indian design input, and Indian manufacturing embedded at every stage, he added.
“The Mobile Phone Manufacturing Scheme (MPMS) is expected to build on the success of the earlier scheme with mobile phone production increasing 33-fold and mobile phone exports increasing 165-fold in FY26 as compared to FY15,” said Prashant Singhal, Telecom and Clients & Industries Leader, EY India.
It provides strong policy support for Indian mobile phone brands through additional incentives for domestic component sourcing and R&D, he added.
—IANS
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