India Plans Smartphone Export Incentives to Boost Apple Production
New scheme likely to link subsidies with exports and local component sourcing, benefiting major manufacturers including Apple and Samsung
New Delhi, Mar 12: The Government of India is preparing a new set of India smartphone export incentives aimed at boosting overseas shipments and increasing the use of domestically produced components in mobile devices. The proposed policy is expected to benefit major manufacturers such as Apple Inc. and Samsung Electronics along with their supply chain partners.
Officials familiar with the plan said the initiative would effectively serve as the second phase of the country’s smartphone manufacturing strategy, replacing the current Production Linked Incentive Scheme that ends on March 31. Unlike the existing programme, which rewards companies based on incremental domestic production, the new proposal is expected to link incentives directly to export performance and higher levels of local value addition.
The details of the scheme, including its budget and subsidy structure, are still being finalised during consultations among government ministries. However, policymakers are considering tiered incentives that reward manufacturers for sourcing components such as display assemblies, camera modules and other sub-parts from Indian suppliers.
India has emerged as one of the fastest growing smartphone export hubs in recent years, largely driven by the expansion of Apple’s contract manufacturing partners. These manufacturers now account for a significant share of the country’s handset exports and have helped position India as a key production base for devices destined for global markets, including the United States.
Officials believe the earlier incentive programme successfully encouraged companies to assemble phones locally and meet domestic demand. The next phase of the strategy aims to deepen the supply chain by increasing local manufacturing of high-value components and integrating India more firmly into global electronics production networks.
The government is also encouraging Chinese smartphone brands such as Oppo, Vivo and Xiaomi to use India as an export base rather than producing mainly for the domestic market.
The move aligns with Prime Minister Narendra Modi’s broader Make in India campaign, which aims to position the country as a major global manufacturing hub and reduce dependence on imported electronics components.
