Examine the role of incentive-linked schemes in building 'Atmanirbhar' technological capability, with reference to MPMS.

Incentive-linked schemes reward measurable outcomes—output, value addition, R&D—rather than mere capacity, making them a market-friendly instrument of self-reliance. The newly approved Mobile Phone Manufacturing Scheme (MPMS), with a ₹62,500 crore outlay over FY2026-27 to FY2030-31, illustrates how such schemes can deepen 'Atmanirbhar' technological capability [1].

How incentive-linked schemes build capability

• Value-chain deepening: MPMS ties incentives to domestic value addition, adding up to 1.5% for local sourcing of components/sub-assemblies—moving India from assembly toward component ecosystems [1].
• Technological sovereignty: explicit push for Indian patents in design and R&D—shifting from "make in India" to "design in India" [1].
• Scale with brands: differentiated rates (2.25%–5%) reward higher value and Indian brand-building, targeting ~₹39 lakh crore production and ~60,000 direct jobs [1].
• Supply-chain resilience: aligns with China+1 de-risking, cushioning strategic vulnerabilities [1].

Limitations to examine

• Risk of subsidy dependence and incentives leaking to low-value assembly if value-addition thresholds are weak.
• Fiscal cost and possible import dependence for critical components and IP.
• Continuity risk in transitioning from the predecessor PLI-LSEM (concluded March 2026) without production disruption [1].

Incentive-linked schemes are thus enablers, not guarantees, of self-reliance—their success hinges on graduating firms toward indigenous technology and design. If MPMS embeds sunset clauses, R&D linkages, and skilling, it can convert manufacturing scale into genuine technological sovereignty, advancing Atmanirbhar Bharat and SDG-9's innovation goals.