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हिन्दी — Read in HindiManufacturing policy and production linked incentives
How India encourages manufacturing: industrial policy and the incentives tied to production.
Showing 4 of 4 articles, those that changed from 1 July to 30 September 2026.Show all
Mobile Phone Manufacturing Scheme
Copy link to Mobile Phone Manufacturing SchemePrelims and Mains
The Mobile Phone Manufacturing Scheme succeeds the production linked incentive for large scale electronics, and pays a share of eligible sales.
- It pays extra for components sourced in India and for Indian brands that design their own products.
What changed
15 Jul 2026New
- The Cabinet approved a ₹62,500 crore scheme for 2026 to 27 to 2030 to 31, after the production linked incentive for large scale electronics ended on 31 March 2026.
PIB, 15 Jul 2026: Cabinet approves Mobile Phone Manufacturing Scheme (MPMS) (opens in a new tab)
Shipbuilding cluster at Porbandar and ship repair at Vadinar
Copy link to Shipbuilding cluster at Porbandar and ship repair at VadinarPrelims
The Shipping Ministry's Shipbuilding Development Scheme supports new shipbuilding clusters and ship repair facilities.
What changed
15 Jul 2026Briefnewly addedThe Ministry gave in principle approval for a 2,000 acre greenfield shipbuilding cluster at Porbandar. It approved ₹1,570 crore of support for a ship repair facility at Vadinar. Press Information Bureau, 15 Jul 2026: In principle approval for a shipbuilding cluster at Porbandar and a ship repair facility at Vadinar (opens in a new tab)
Solar cell and module manufacturing
Copy link to Solar cell and module manufacturingPrelims and Mains
LeadSolar manufacturing: modules without cellsJuly 2026
Why in news
A rule in force from 1 June 2026 requires solar projects under government schemes, net metering and open access to use cells made in India. India makes far fewer cells than modules, so by July many module factories stood idle for want of cells.
- about 200 GWIndia's capacity to make solar modules
- 27 GWits capacity to make solar cells, on paper
- about 95 per centof India's cell imports that come from China
Background
- A solar panel is made in a chain: polysilicon, then ingots and wafers, then cells, then modules.
- The cell is the part that turns light into electricity. A module is cells wired together and framed, which is the easiest step.
- India built the last step first. The earlier steps need more capital, more power and technology that China controls.
- The Approved List of Models and Manufacturers (ALMM) names the equipment that government supported projects must buy: List I for modules and List II for cells.
What went wrong
- With List II in force, module makers must buy Indian cells, and they wait six to eight months for them.
- Nearly a third of small and medium module makers have halted output.
- Modules with Indian cells cost almost double those with Chinese cells.
- China has curbed exports of solar manufacturing equipment and technology, so new cell plants are slow to build.
What the government did
- It extended the exemption from List II to 31 December 2026, but only for net metering and open access projects.
- In August it began work on a subsidy scheme for polysilicon, the first link in the chain.
- The production linked incentive for solar manufacturing rewards integrated plants that make the earlier stages too.
The dilemma
- Self reliance: dependence on one country for an essential input is a risk, as the export curbs show.
- Deployment: costlier panels slow the addition of solar capacity, and the gap would be met by coal.
- A local content rule works only if local supply exists when the rule takes effect.
The way forward
- Phase in local content rules in step with capacity.
- Support the upstream stages, polysilicon and wafers, where dependence is deepest.
- Fund research on newer cell technologies, so that India is not always buying the last generation.
- Diversify import sources in the meantime.
Prelims facts
- ALMM List I covers modules; List II covers cells.
- The solar chain runs polysilicon, wafer, cell, module.
- India's cell capacity is a small fraction of its module capacity.
The Approved List of Models and Manufacturers requires government supported projects to buy listed equipment. List I covers modules and List II covers cells. Further up the chain, the Centre has begun work on a subsidy scheme for polysilicon, the first link in the solar value chain, aiming at 30 GW of capacity in India by 2030.
What changed
24 Jul 2026LeadSolar manufacturing: modules without cells
BHAVYA-Rasayan scheme for chemical parks
Copy link to BHAVYA-Rasayan scheme for chemical parksPrelims
BHAVYA-Rasayan is a central scheme to build greenfield chemical parks with the States, with the aim of cutting chemical imports.
What changed
10 Aug 2026Briefnewly addedThe scheme supports three greenfield chemical parks between 2026-27 and 2030-31, with an outlay of ₹3,030 crore. The Centre gives up to ₹1,000 crore per park for common infrastructure, while States provide land and must mobilise at least ₹500 crore. PRS Legislative Research, 10 Aug 2026: Monthly Policy Review, August 2026 (opens in a new tab)
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