The MPMS replaces the five-year production-linked incentive (PLI) scheme for mobile devices, which ended in 2025-26. The new scheme has been tweaked to incentivise exports and push localisation by encouraging vendors to buy components from domestic suppliers.
Speaking to Business Standard, Amber Enterprises Chief Executive Officer and Whole-Time Director Jasbir Singh, whose company is one of the largest original design manufacturers/original equipment manufacturers (OEMs) of air conditioners in the country, said, “We are looking into the notification and the fine print to see whether we are eligible for it. If we are, we will surely consider it.”
Amber Enterprises, in June this year, entered into a manufacturing collaboration with Oppo Mobiles India to assemble three brands — Oppo, Realme, and OnePlus — owned by Chinese giant BBK Electronics. It is the company’s maiden entry into the mobile phone sector. While trial production is expected to start in March 2027, the company is looking at making 8-9 million phones per annum in the first year, rising to 13-15 million in the second year.
Lava International Chairman and Managing Director (MD) Hari Om Rai also confirmed that the company will apply under the incentive category for Indian brands under the scheme. “Yes, we are planning to apply under the scheme for our own brand, Lava, which we manufacture,” said Rai.
NxtQST, founded by Madhav Sheth, former CEO of Realme, also confirmed that it will apply. Sheth said, “We are applying for the scheme for an Indian brand. We think there is a huge scope, and, as a result, we have already invested $10 million in developing our own research and development (R&D) capabilities and hired over 600 engineers.”
Both Lava and Sheth will apply under the T2 category, which is meant to support Indian mobile phone brands. The government expects around three players to come in under this category.
Under the scheme, companies must demonstrate their own R&D and design wherewithal, ensure their intellectual property (IP) is incorporated in India, and have Indians holding more than 51 per cent of the stake in the company.
Sources aware of the development said Dixon, one of the leading smartphone OEMs in the country, is also planning to apply for eligibility under the scheme. The company was one of the few Indian companies that benefited from the earlier PLI scheme as well. The firm assembles phones for Motorola, part of the Lenovo group, which are also exported to markets such as the US. It also assembles phones for Transsion Holdings, whose plant it acquired with a majority stake, with around 2 million phones exported to Africa. Dixon also makes phones for Chinese giant Xiaomi, but its big bet on exports could come from other brands.
For instance, it is one of two vendors that assemble Google Pixel phones in the country. Google is looking at shifting its smartphone assembly business from China from next year and closing down production in that country.
With around 400,000 phones made in India, mostly for the domestic market, there is an expectation that part of Google’s China business could shift to India. Currently, Vietnam accounts for 63 per cent of Google Pixel production, followed by China, while India accounts for only 3 per cent.
However, Dixon also has an opportunity to boost exports following government clearance for it to set up a joint venture with Vivo, in which Dixon will hold a 51 per cent stake, with the rest held by Vivo, to exclusively assemble its phones in the country.
Vivo is the No. 1 player in the country by market share, with an 18 per cent share, according to Omdia data for April-June 2026. For Dixon, the deal would mean assembling another 20-22 million phones per annum. Exports could add another 3-4 million phones.
Likely in the fray
Amber: First-time mobile entrant, looking at the new scheme after its Oppo tieup
Dixon: Already a PLI-era workhorse; now looking to use the new scheme to deepen its mobile manufacturing and export play
Lava and NxtQST: Seeking support reserved for Indian mobile brands
Leave a Reply