UPSC Prelims Practice Questions — Cabinet approves Mobile Phone Manufacturing Scheme (MPMS)

Q1. With reference to the Mobile Phone Manufacturing Scheme (MPMS) approved in 2026, consider the following as its core parameters: 1. A budgetary outlay of Rs 62,500 crore 2. An operational period of five years, from FY 2026-27 to FY 2030-31 3. A differentiated base incentive rate ranging from 2.25% to 5% on eligible sales 4. Approval accorded by the Cabinet Committee on Economic Affairs (CCEA) Which of the above is/are correctly identified?

  1. A budgetary outlay of Rs 62,500 crore
  2. An operational period of five years, from FY 2026-27 to FY 2030-31
  3. A differentiated base incentive rate ranging from 2.25% to 5% on eligible sales
  4. Approval accorded by the Cabinet Committee on Economic Affairs (CCEA)
  • A. 1, 2 and 3
  • B. 1 and 4 only
  • C. 2, 3 and 4
  • D. 1, 2, 3 and 4

Q2. Under the differentiated base incentive structure of the Mobile Phone Manufacturing Scheme (MPMS), what is the highest incentive rate offered on eligible sales?

  • A. 5%
  • B. 6%
  • C. 4%
  • D. 2.25%

Q3. In which year was the Production Linked Incentive (PLI) Scheme for Large Scale Electronics Manufacturing - the scheme that MPMS succeeds - notified?

  • A. 2020
  • B. 2017
  • C. 2021
  • D. 2019

Q4. Consider the following statements comparing the Mobile Phone Manufacturing Scheme (MPMS) with its predecessor, the PLI Scheme for Large Scale Electronics Manufacturing (PLI-LSEM): 1. PLI-LSEM offered incentives of 4% to 6% on incremental sales, whereas MPMS offers a differentiated base incentive of 2.25% to 5%. 2. PLI-LSEM concluded on 31 March 2026, and MPMS runs for five years from FY 2026-27 to FY 2030-31. 3. Unlike PLI-LSEM, MPMS is administered by the Ministry of Heavy Industries. Which of the statements given above is/are correct?

  1. PLI-LSEM offered incentives of 4% to 6% on incremental sales, whereas MPMS offers a differentiated base incentive of 2.25% to 5%.
  2. PLI-LSEM concluded on 31 March 2026, and MPMS runs for five years from FY 2026-27 to FY 2030-31.
  3. Unlike PLI-LSEM, MPMS is administered by the Ministry of Heavy Industries.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q5. Consider the following statements regarding the administration of the Mobile Phone Manufacturing Scheme (MPMS) relative to earlier electronics schemes: 1. Both MPMS and the PLI Scheme for Large Scale Electronics Manufacturing fall under the Ministry of Electronics and Information Technology (MeitY). 2. The domestic value addition in electronics manufacturing, which MPMS seeks to deepen, currently stands at about 18%-20%. 3. MPMS, unlike the earlier electronics schemes, is implemented by the Ministry of Commerce and Industry. Which of the statements given above is/are correct?

  1. Both MPMS and the PLI Scheme for Large Scale Electronics Manufacturing fall under the Ministry of Electronics and Information Technology (MeitY).
  2. The domestic value addition in electronics manufacturing, which MPMS seeks to deepen, currently stands at about 18%-20%.
  3. MPMS, unlike the earlier electronics schemes, is implemented by the Ministry of Commerce and Industry.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q6. Under the PLI Scheme for Large Scale Electronics Manufacturing administered by MeitY - the scheme that MPMS now replaces - how many companies were approved as beneficiaries?

  • A. 32
  • B. 16
  • C. 48
  • D. 22

Q7. India's successive electronics manufacturing schemes - M-SIPS, the Phased Manufacturing Programme, the PLI Scheme for Large Scale Electronics Manufacturing and now MPMS - have all been operationalised exclusively by which ministry?

  • A. Ministry of Electronics and Information Technology
  • B. Ministry of Heavy Industries
  • C. Ministry of Commerce and Industry
  • D. Ministry of Micro, Small and Medium Enterprises

Q8. The Mobile Phone Manufacturing Scheme's objectives of deepening domestic value addition and building Indian brands, and the disbursement of its incentives, are handled by which of the following?

  • A. Ministry of Electronics and Information Technology (MeitY)
  • B. NITI Aayog
  • C. Department for Promotion of Industry and Internal Trade (DPIIT)
  • D. Ministry of Heavy Industries

Q9. MPMS aims to deepen domestic value addition in electronics manufacturing. Approximately what is the current level of domestic value addition in India's electronics manufacturing that the scheme seeks to raise?

  • A. 18%-20%
  • B. 35%-40%
  • C. 25%-30%
  • D. 8%-10%

Q10. In which calendar year did smartphones emerge as India's single largest exported commodity, at about USD 30 billion, surpassing diesel and diamonds?

  • A. 2025
  • B. 2023
  • C. 2024
  • D. 2026

Q11. In the context of the Union Cabinet's approval of MPMS, the term 'Union Cabinet' is most accurately defined as:

  • A. The body of senior-most ministers holding Cabinet rank, chaired by the Prime Minister, functioning as the top decision-making organ of the Union executive
  • B. The full Council of Ministers comprising Cabinet Ministers, Ministers of State and Deputy Ministers taken together
  • C. A standing committee of the Cabinet that deals exclusively with economic and investment proposals
  • D. A body of senior civil servants (Secretaries) that advises the Prime Minister on policy proposals