India is considering new subsidies and tariff reductions for Apple and other smartphone manufacturers, who assemble electronic devices in the country. The program is India’s next step in its effort to become a major global manufacturing center, according to a report from Bloomberg.
India id making the final decision on 230 billion rupees, or about $2.7 billion USD in financial incentives and tariff adjustments target the consumer electronics sector. The government’s measures are intended to stimulate the production of electronic components in the Asian country. The components include multi-layered printed circuit boards, storage, microprocessors, camera modules, and batteries, most of which are currently imported from China and other countries.
The incentives are the latest move by Prime Minister Narendra Modi’s government. The government’s new proposal specifically targets establishing an Indian supply chain for components.
Apple first began assembling iPhones in the India back in 2017, initially focusing on assembling older models. Apple’s Indian-assembled iPhones now account for nearly 15% of the company’s global iPhone output. Apple now assembles the iPhone 16 in India.
The Indian government is expected to announcement a final decision on the measures in the upcoming federal budget in February.
