UPSC Prelims Practice Questions — Government Notifies ₹62,500 Cr Mobile Phone Manufacturing Scheme to Boost Global Competitiveness and Deepen Domestic Value Addition

Q1. With reference to the Mobile Phone Manufacturing Scheme (MPMS) approved by the Union Cabinet, consider the following: 1. Incentive support on eligible sales at differentiated rates ranging from 2.25% to 5% 2. An additional incentive of up to 1.5% linked to domestic sourcing of key components and sub-assemblies 3. An additional incentive of 3% on eligible sales for design and R&D undertaken to build Indian brands 4. A tenure of six years, extendable by an optional one-year gestation period Which of the above is/are correctly identified as provisions of the scheme?

  1. Incentive support on eligible sales at differentiated rates ranging from 2.25% to 5%
  2. An additional incentive of up to 1.5% linked to domestic sourcing of key components and sub-assemblies
  3. An additional incentive of 3% on eligible sales for design and R&D undertaken to build Indian brands
  4. A tenure of six years, extendable by an optional one-year gestation period
  • A. 1 and 2 only
  • B. 1, 2 and 3
  • C. 2, 3 and 4
  • D. 1 and 4 only

Q2. Over and above the base incentive on eligible sales, the largest single additional incentive under the Mobile Phone Manufacturing Scheme is available for which one of the following?

  • A. Sourcing of key components and sub-assemblies from suppliers located in India
  • B. Design and research and development work undertaken for building Indian brands
  • C. Incremental export earnings realised from shipments of finished handsets
  • D. Creation of additional direct employment at notified manufacturing facilities

Q3. Under the Production Linked Incentive Scheme for Large Scale Electronics Manufacturing, the release of incentive to a successful applicant is approved by which one of the following?

  • A. An Empowered Committee constituted under the scheme itself
  • B. The Public Investment Board of the Department of Expenditure
  • C. The Empowered Group of Secretaries serviced by NITI Aayog
  • D. The Project Appraisal Board of the Department of Expenditure

Q4. How many companies were approved as beneficiaries under the Production Linked Incentive Scheme for Large Scale Electronics Manufacturing, the 2020 predecessor of the present mobile phone incentive framework?

  • A. 19
  • B. 27
  • C. 32
  • D. 46

Q5. How many target segment products, spanning bare components and sub-assemblies, are covered by the Electronics Component Manufacturing Scheme?

  • A. 8
  • B. 11
  • C. 14
  • D. 22

Q6. The Electronics Component Manufacturing Scheme, notified in April 2025, is administered by which one of the following?

  • A. Ministry of Electronics and Information Technology
  • B. Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry
  • C. Department of Telecommunications, Ministry of Communications
  • D. Department of Heavy Industry, Ministry of Heavy Industries

Q7. Which one of the following emerged as India's single largest exported commodity in calendar year 2025?

  • A. Petroleum products refined from imported crude oil
  • B. Cut and polished diamonds and studded jewellery
  • C. Smartphones and other mobile handsets
  • D. Formulations and bulk drugs of the pharmaceutical sector

Q8. India's mobile phone exports first touched the level of about Rs 2,00,000 crore, representing a 127-fold rise over their 2014-15 level, in which financial year?

  • A. 2021-22
  • B. 2022-23
  • C. 2023-24
  • D. 2024-25

Q9. As officially reported, domestic value addition in India's electronics manufacturing sector currently stands in which of the following ranges?

  • A. 5% to 12%
  • B. 16% to 35%
  • C. 18% to 20%
  • D. 25% to 30%

Q10. The outlay of Rs 1.97 lakh crore for Production Linked Incentive Schemes covering key manufacturing sectors was announced in which Union Budget?

  • A. 2019-20
  • B. 2020-21
  • C. 2021-22
  • D. 2022-23

Q11. Consider the following pairs of scheme and the ministry or department that implements it: 1. Mobile Phone Manufacturing Scheme — Ministry of Electronics and Information Technology 2. Electronics Component Manufacturing Scheme — Ministry of Electronics and Information Technology 3. PLI Scheme for Automobiles and Auto Components — Ministry of Electronics and Information Technology 4. PLI Scheme for Telecom and Networking Products — Ministry of Electronics and Information Technology Which of the above pairs is/are NOT correctly matched?

  1. Mobile Phone Manufacturing Scheme — Ministry of Electronics and Information Technology
  2. Electronics Component Manufacturing Scheme — Ministry of Electronics and Information Technology
  3. PLI Scheme for Automobiles and Auto Components — Ministry of Electronics and Information Technology
  4. PLI Scheme for Telecom and Networking Products — Ministry of Electronics and Information Technology
  • A. 1 and 2 only
  • B. 3 and 4 only
  • C. 2 and 3 only
  • D. 1 and 4 only