India has proposed a $2.7 billion subsidy program to attract global electronics manufacturers. This initiative focuses on increasing local production of devices like Apple’s iPhone. The Ministry of Electronics and IT outlined the plan, which offers financial incentives and tariff reductions to lower production costs.
Key Features of the Subsidy Program
The subsidies target components like camera lenses, lithium-ion cells, memory, circuit boards, and microprocessors. Each component qualifies for specific levels of financial support. The government also plans to reduce tariffs on certain electronic parts, cutting costs further for companies operating in India.
If approved, the government will announce the program as part of its February budget. These measures aim to position India as a leading hub for smartphone manufacturing.
Apple’s Expanding Presence in India
Apple has been working with the Indian government since 2015 under the “Make in India” initiative. The company doubled its iPhone production in India in 2024 compared to 2023. Currently, Apple produces 14% of its global iPhones in India, and it aims to increase this share to 25%.
By increasing production in India, Apple reduces its reliance on Chinese manufacturers. This move aligns with its strategy to diversify its supply chain while leveraging India’s growing consumer market.
Benefits for the Electronics Industry
The subsidy program encourages other global electronics makers to expand operations in India. It supports job creation, innovation, and competitive manufacturing, making India an appealing alternative to traditional production hubs.
India’s initiative showcases its ambition to play a larger role in the global electronics supply chain. For companies like Apple, the plan offers an opportunity to scale operations efficiently while benefiting from cost reductions.
