The Union Cabinet has approved the Mobile Phone Manufacturing Scheme, the Ministry of Information Technology and Electronics (MeitY) announced on Wednesday. The new scheme has a budgetary outlay of Rs. 62,500 crore. It aims to “further scale” phone production in India, “deepen value addition”, and “strengthen” the supply chains involved in handset manufacturing. The ministry also says that its launch will improve global competitiveness. Under the Mobile Phone Manufacturing Scheme, the government will provide incentives to phone manufacturers based on eligible sales in India at differentiated rates, ranging from 2.25 percent to 5 percent.
