India’s New Mobile Scheme to Drive Local Component Growth

Historically dependent on imported sub-assemblies—ranging from multilayer printed circuit boards (PCBs) and display modules to complex sensors and electromechanical relays—India is restructuring its industrial framework to become a global production hub rather than merely a high-consumption target market.

This momentum is highlighted by the recent approval of 31 additional project proposals under the ECMS. These represent a projected capital commitment of ₹6,844 crore, approved within five months of an initial tranche of 75 applications valued at ₹61,671 crore.

The expanding project base encompasses first-ever domestic production facilities for specialized components, including surface acoustic wave filters, inductors, coils, and acoustic speakers, alongside raw materials like acetylene black and custom electrolyte additives.

"The expansion illustrates a structural pivot from an assembly-led framework to a materials-and-components-driven ecosystem," Chandak added. "By embedding Indian intellectual property, indigenous R&D, and local manufacturing at every tier, the country is securing true tech sovereignty."

Analyzing the economic trajectory, Prashant Singhal, Telecom and Clients & Industries Leader at EY India, highlighted the cumulative momentum built over the past decade. Mobile phone production in India has surged 33-fold, while export volumes expanded 165-fold compared to base levels from FY15.

Singhal emphasized that the MPMS framework provides dedicated policy mechanisms for domestic brands by pairing baseline production incentives with additional financial performance multipliers linked directly to local component sourcing, technology transfer, and domestic design input.

To gain further insight into the underlying economic shift, view this analysis on the growth of India's electronics sector:

Electronics PLI Boost: Projects Worth ₹7172 Cr Cleared

This video provides direct context and commentary from industry experts regarding the government's component manufacturing push and its structural impact on domestic electronics supply chains.