MPMS to Power India’s ‘Sand-to-Systems’ Electronics Ambition

The notification of the ₹62,500-crore Mobile Phone Manufacturing Scheme (MPMS) represents a major shift in India’s electronics manufacturing strategy—from large-scale assembly toward deeper domestic value addition, indigenous design and intellectual property creation.

Ashok Chandak, President of the India Electronics and Semiconductor Association (IESA), described the scheme as a “defining turning point” for the industry. By incentivizing localization of critical sub-assemblies such as camera modules, display assemblies, mechanical components and battery cells, MPMS aims to increase the proportion of value created within India.

A particularly significant element is the proposed 3% incentive for domestic R&D and product design under Target Segment 2, aimed at encouraging the creation and expansion of Indian mobile-phone brands. This could help manufacturers move beyond contract production toward owning technology, designs, products and intellectual property.

The bigger opportunity, however, comes from connecting MPMS with India's wider electronics and semiconductor strategy.

According to Chandak, the combination of MPMS, the Electronics Component Manufacturing Scheme (ECMS) and Semicon India can create a powerful integrated manufacturing ecosystem. MPMS generates demand for finished devices, ECMS strengthens domestic production of components, sub-systems and multilayer PCBs, while semiconductor initiatives build capabilities in silicon fabrication, packaging, ATMP/OSAT and fabless chip design.

Together, these programs can potentially create what IESA describes as an end-to-end “Sand-to-Systems” value chain:

The strategic objective is therefore much bigger than producing more smartphones. India wants to capture a greater share of the technology, IP, manufacturing and economic value embedded inside every device.

If successfully executed, MPMS could help transform India from one of the world's largest mobile manufacturing locations into a design-led electronics and semiconductor powerhouse, strengthening supply-chain resilience, creating high-value technology jobs and positioning Indian brands more competitively in global markets.