As India’s current phone manufacturing incentive program is about to expire, the country is planning new incentives to keep production growing. Here are the details.
India doubles down on recent output growth
While Apple has diversified its manufacturing away from China over the years, its efforts intensified last year after President Trump launched his global tariff war.
As a result, India appeared like one from Apple new manufacturing centersreaching the milestone of assembling about a quarter of the company’s iPhones, according to a report released earlier this week.
Part of this successful turnaround was due to India’s Production Linked Incentive (PLI) Scheme.which provides financial incentives to companies manufacturing smartphones in the country.
Now, how reported by ReutersIndia is planning new incentives set to roll out after the current PLI scheme expires later this month.
As part of the new plan, the Indian government is said to be looking at linking incentives to export performance. This can be an effective way to encourage companies to use the country as their global manufacturing hub, and not just for domestic sales.
The timing is obvious: Apple is RECITED aiming to move about half of iPhone production to India within a year, although a US court ruling overturning Trump’s fentanyl-related tariff on China could reduce India’s leverage.
Anyway, according to ReutersIndia “produced nearly $60 billion worth of mobile phones in fiscal year 2024-25, a 28-fold increase over a decade,” adding that as part of Prime Minister Narendra Modi’s “agenda to boost domestic manufacturing,” the country “aims to expand its electronics output by $0 billion by 2030.”
The report also claims that the country’s “Ministry of Electronics and Information Technology has held industry consultations on the design of the scheme,” but declined to comment when contacted.
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