Cabinet Also Approves ₹62,500 Cr Mobile Phone Manufacturing Scheme Alongside ISM 2.0
The same Cabinet session that approved ISM 2.0 also approved a ₹62,500 crore Mobile Phone Manufacturing Scheme (MPMS) — signalling a full-stack electronics manufacturing push from chips to finished devices in a single day.
The Union Cabinet approved the Mobile Phone Manufacturing Scheme (MPMS) with a ₹62,500 crore outlay on July 15, 2026 — the fourth decision in the same session that approved ISM 2.0 (decisions 3–5). Total electronics-and-semiconductor policy spend announced in one day: over ₹1.90 lakh crore (ISM 2.0 + MPMS).
MPMS is designed as a successor to the existing PLI scheme for mobile manufacturing and targets a significant expansion of India's domestic handset manufacturing ecosystem. India currently manufactures approximately 330 million smartphones annually — MPMS aims to increase both volume and domestic value addition, pushing beyond assembly toward component manufacturing.
The combined ISM 2.0 + MPMS announcement is the clearest signal yet that India's electronics manufacturing strategy has moved from individual scheme interventions to a coordinated upstream-downstream push: semiconductor manufacturing (ISM 2.0) feeding into device manufacturing (MPMS).
For the semiconductor ecosystem, MPMS is a demand-side signal. Every mobile phone requires a display driver IC, a power management IC, RF chips, sensors, and a baseband processor. As India's handset manufacturing scales under MPMS, domestic demand for semiconductor packaging, testing, and eventually fabrication grows with it. The ISM 2.0 + MPMS combination is the government articulating — for the first time — that it wants India to make both the chips and the devices that use them. This is the industrial policy logic that Taiwan, South Korea, and China all followed. India is now explicitly following the same playbook.