India Drafts New Incentives To Boost Smartphone Production For Apple And Samsung

The government aims to deepen domestic value addition while attracting global giants like Apple and Samsung to expand their production footprint in India. This marks a strategic shift from assembly-driven growth to export-oriented manufacturing, aligning with India’s ambition to rival China in electronics.

Focus On Exports And Localization
The new scheme will link subsidies directly to smartphone exports and use of locally made components. This approach is expected to boost India’s competitiveness in global markets while supporting domestic suppliers of parts and sub-assemblies.

Impact On Apple And Samsung
Apple has already scaled iPhone production in Tamil Nadu and Karnataka, while Samsung operates one of the world’s largest smartphone factories in Noida. Both companies are expected to benefit significantly from the new incentives, potentially accelerating their investments in India.

Strategic Outlook
By embedding India more deeply into global supply chains, the government hopes to position the country as a reliable alternative to China, while fostering innovation and job creation in the electronics sector.

Key Highlights

• India drafting new smartphone incentive scheme post-PLI expiry
• Subsidies tied to exports and local sourcing
• Policy expected to launch in April 2026
• Apple and Samsung likely to expand production
• India aims to rival China in global electronics supply chains

Sources: Bloomberg, The Print, Outlook Business, The Tech Portal