By Shivangi Acharya
NEW DELHI, March 12 (Reuters) – India is planning new incentives for local production of mobile phones after its flagship program for the growing sector expires this month, two sources said in a boost for global companies such as Apple and Samsung.
The South Asian country’s willingness to continue supporting the industry comes as it loses tariff benefits from China for access to the United States, with fentanyl-related tariffs imposed on Beijing by President Donald Trump invalidated by a court order.
Smartphone manufacturing is a key plank of Prime Minister Narendra Modi’s agenda to boost domestic manufacturing. India plans to expand its electronics manufacturing to $500 billion by FY2030.
Government figures show the country to produce mobile phones worth nearly $60 billion in the 2024-25 fiscal year, a 28-fold increase in a decade. During the same period, mobile phone exports increased to nearly $21.70 billion, making it India’s top export product by 2025, a 127-fold increase.
New Delhi plans to link new incentives to exports to boost globally competitive manufacturing, an Indian official said. The official added that it is likely to cover the investment from April this year.
Previously, industry leaders such as Apple and Samsung relied on the country’s manufacturing-linked stimulus scheme, a nearly $21 billion program designed to make Chinese factories more competitive, which expires this month.
This helped Apple to make its most expensive and latest mobile phone models in India, after starting with low-cost versions. Trump’s high tariffs on China also prompted some manufacturing shifts.
India’s Ministry of Electronics and Information Technology has consulted the industry on designing the scheme, said an industry executive aware of the discussions.
The ministry did not immediately respond to an email seeking comment.
($1 = 92.1700 INR)
(Additional reporting by Munsif Wingatell; Editing by Chizo Nomiyama)
