Amber Neely
India's Ministry of Electronics and IT has proposed giving component makers billions in aid in an effort to boost local manufacturing of devices like the iPhone.
India is once more hoping to incentivize smartphone manufacturers to continue to expand into the region. This time the plan includes 230 billion rupees, or about $2.7 billion, in new subsidies to offset production costs.
In addition to the subsidies, the ministry has also suggested that India reduce tariffs on certain electronic components, ultimately bringing down production costs, a source told Bloomberg. If approved, the details will likely be announced in the government's upcoming budget in February.
Components covered under the proposed subsidies include camera components such as lenses, lithium-ion cells, memory, multi-layered printed circuit boards, storage, and microprocessors. The subsidies are expected to vary based on the specific component.
The move should help attract electronics makers, especially those who make smartphones, to utilize India for manufacturing jobs. Prime Minister Narendra Modi has been working directly with Apple since 2015 as part of the "Make In India" program.
As a result, Apple has been rapidly expanding into India for the last decade. In August 2024, officials in India said that Apple was the fastest-growing firm in the country over the last 50 years.
In April 2024, 14% of all iPhones were made in India — roughly one in every seven iPhones. That number was double what the country produced in 2023.
Apple is reportedly attempting to raise its Indian manufacturing to 25%, which would mean one in four iPhones could be made in India. The move comes as part of Apple's aim to dial back reliance on Chinese companies.
Wesley Hilliard
Malcolm Owen
Christine McKee
Andrew O'Hara
3 Comments
Genius move: offer e billion to bring them in, then accuse them of anticompetitive business models and extort multiple times that amount.
Companies are clearing houses that 1 billion, 3 billion or four billion dollars will be paid for by local Indians all Apple will do is start a ledger a line item in their books labeled the Indian subcontinent, in fact that ledger is already in existence, companies are clearing houses. The Hudson Bay Trading Company never ever in their history paid any taxes or fees a ledger and a line item was their middle name.
That is why Tim Cook has a smile on his face when he meets with the Orange one, Modi, Xi, or Margarethe…..A ledger and a line item the human creation known as company might be the slipperiest Eel ever created by man. And what’s ironic is the first company was probably created in ancient China or in ancient Pakistan.