India plans new incentives for mobile phone manufacturing to support Apple and Samsung

New Delhi — India is preparing to introduce new incentives aimed at boosting local production of mobile phones, following the conclusion of its current flagship programme for the sector at the end of this month, according to two sources familiar with the matter.

The move is expected to benefit major global technology companies such as Apple and Samsung, both of which have significant manufacturing operations in India. The government’s decision to continue supporting the smartphone industry comes at a time when India is set to lose its tariff advantage over China for access to the United States. This development follows a court ruling that invalidated a fentanyl-related levy imposed by US President Donald Trump on Beijing.

Smartphone manufacturing has become a central part of Prime Minister Narendra Modi’s strategy to strengthen domestic manufacturing capabilities. India has set an ambitious target to expand its electronics manufacturing sector to $500 billion by the fiscal year 2030. Government data indicates that the country produced nearly $60 billion worth of mobile phones in the 2024-25 fiscal year, marking a 28-fold increase over the past decade.

In addition to the surge in domestic production, mobile phone exports have also seen significant growth. Over the same period, exports have climbed to nearly $21.70 billion, representing a 127-fold increase. This makes mobile phones India’s most exported product in 2025.

According to the sources, the Indian government is considering linking the new incentives to further expansion in the sector. However, specific details regarding the structure and scope of the new incentive programme have not yet been disclosed.

The planned incentives are part of a broader effort by New Delhi to position India as a global hub for electronics manufacturing, leveraging its growing capacity to attract international investment and create employment opportunities within the country.