Shares of electrical equipment manufacturers Kaynes Tech, Dixon Tech and Syrma SGS gained up to 2% on Monday, after the government notified a new Mobile Phone Manufacturing Scheme (MPMS), with a budgetary outlay of Rs 62,500 crore.
The Ministry of Electronics and Information Technology (MeitY) on Friday notified the new scheme to boost global competitiveness and deepen domestic value addition, supporting Indian mobile phone brands to achieve technological sovereignty, capture greater economic value, and encourage Indian patents in design and R&D, while generating employment, it said in a press release. The notification comes more than a month after the Union Cabinet approved the scheme on July 15.
The Mobile Phone Manufacturing Scheme (MPMS) has two target segments: the first incentivizes phone manufacturing in India, while the second supports Indian mobile phone brands. The scheme shall run for five years, from FY27 to FY31.
Incentives under Mobile Phone Manufacturing Scheme
Under MPMS, the government will offer differentiated incentives ranging from 2.25-5% to eligible mobile phone manufacturers and electronics manufacturing services providers. Indian brands will be eligible for an incentive of 5%, along with an additional 3% for Indian design and R&D. They will also receive non-fiscal support under the scheme.
Union IT Minister Ashwini Vaishnaw said that the Mobile Phone Manufacturing Scheme will provide a significant impetus to the development of Indian-owned mobile brands, intellectual property and design. He added that the design, intellectual property and brand must be Indian-owned and capable of competing with the best products in the respective market segment.
The government expects cumulative mobile phone production in the country to reach approximately Rs 39 lakh crore during the scheme tenure, with a significant increase in mobile phone exports. MPMS is also expected to generate around 60,000 direct jobs, contributing to economic growth, employment generation, and strengthening India's position as a global electronics manufacturing hub, the ministry said in its press release.
Also read | Govt launches 62,500 Cr ‘Mobile Phone Manufacturing Scheme’, aims strong Indian brand by 2027
Electric equipment maker stocks
Kaynes Tech shares have gained around 7% in a week and 22% in a month, but dropped more than 37% in one year. In the longer term, the shares of the company have delivered 110% returns over three years. The stock rose over 1% today to trade at Rs 3,943 apiece in morning trade.
Dixon Tech shares meanwhile gained 6% in a week and 23% in 2026 so far, although their delivered negative returns of more than 12% over the past one year. The shares of the company have however jumped over 200% in three years and nearly 290% in five years. They gained over 1% in early morning trade to Rs 15,000 apiece on Monday.
Syrma SGS shares have gained 12% in a month and over 100% in 2026 so far, delivering nearly 200% returns over three years. The stock jumped more than 2% to trade at Rs 1,472 apiece on Monday morning.
Also Read | Mobile phone makers with turnover of Rs 10,000 cr in FY26 eligible for MPMS: Govt
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