Assess the continuity and change between the PLI Scheme for Large Scale Electronics Manufacturing and the Mobile Phone Manufacturing Scheme.

The Union Cabinet's approval of the Mobile Phone Manufacturing Scheme (MPMS) on 15 July 2026, with a Rs 62,500 crore outlay, succeeds the PLI Scheme for Large Scale Electronics Manufacturing (PLI-LSEM) that closed on 31 March 2026 [1]. MPMS retains PLI's core logic while decisively shifting its end-goal, making both continuity and change assessable.

Continuity with PLI-LSEM

• Incentive-linked design: like PLI, MPMS rewards eligible sales via differentiated rates (2.25%–5%), preserving the production-linked template [1].
• Sectoral focus: both anchor India's electronics push on mobile handsets, the largest export segment.
• Policy intent: both advance scaling of production and supply-chain resilience, extending the China+1 and Atmanirbhar Bharat thrust [1].

Change from PLI-LSEM

• From volume to value: MPMS explicitly targets deepening domestic value addition, not mere assembly, seeking to capture larger economic value [1].
• Design and IP: a new push for Indian patents in design and R&D and technological sovereignty signals a "design in India" pivot beyond "make in India" [1].
• Brand-building: promoting Indian-owned brands marks a qualitative departure from foreign-firm-dominated PLI output [1].
• Sourcing depth: an added incentive up to 1.5% linked to domestic component sourcing rewards backward integration [1].

MPMS is best read as an evolution rather than a rupture — retaining PLI's proven incentive machinery while re-orienting it toward value, intellectual property, and self-reliance. If implementation matches intent, it can help India climb the electronics value chain, advancing the goal of a self-reliant Viksit Bharat.