India’s government plans to offer at least US$2.7 billion in support for local manufacturing, which could reduce iPhone production expenses in the country, reports Bloomberg (a subscription is required to read the article).
“The Ministry of Electronics and IT proposed giving manufacturers of components like batteries and camera parts at least 230 billion rupees ($2.7 billion) in support, according to people familiar with the matter, who asked not to be identified as the discussions are private,” the article says. “The ministry also recommended reducing tariffs on some electronic components, an industry demand that will help bring down production costs, one of the people said.”
A decision is expected to be announced during next month’s budget, per Bloomberg.
India has long wanted Apple and other companies to expand their manufacturing in the country. In October 2024, Reuters reported that India is expected to limit imports of laptops, tablets and personal computers such as Macs and iPads after January in a move to push companies such as Apple to increase domestic manufacturing.
This plan, if implemented, could disrupt an industry worth US$8 billion to $10 billion and reshape the dynamics of the IT hardware market in India, which is heavily reliant on imports, according to Reuters.
A similar plan to restrict imports was withdrawn last year following backlash from companies and lobbying from the United States. India has since monitored imports under a system set to expire this year and has asked firms to seek fresh approvals for imports next year. Reuters says that the government feels it has given the industry enough time to adapt, said the sources, who did not want to be identified as discussions are private.
