India’s Manufacturing Scheme: Apple & Google Expand Production

India has introduced a significant new Mobile Phone Manufacturing Scheme, valued at Rs 62,500 crore, aimed at attracting major technology companies like Apple and Google to expand their production within the country. This initiative seeks to encourage Apple to broaden its manufacturing beyond iPhones and to entice Google to shift a substantial portion of its device exports from China to India.

Understanding the New Incentive Framework

The scheme, active until the financial year 2030-31, replaces a previous production-linked incentive program. It provides direct financial incentives on eligible sales to boost domestic electronics manufacturing.

• Incentives range from 2.25% to 5% on eligible sales.
• An additional 1.5% incentive is offered for companies sourcing specific components domestically.
• These components include display modules, camera modules, enclosures, batteries, and USB cables.

India’s Remarkable Mobile Export Surge

India’s mobile phone manufacturing sector has witnessed remarkable growth over the past decade, positioning the nation as a global leader. This expansion reflects a strategic focus on increasing local production and export capabilities.

• Mobile phone exports surged 166 times between 2014 and 2025.
• This growth represents a compound annual growth rate (CAGR) of approximately 59%.
• India is now the world’s second-largest mobile phone manufacturer by volume.
• Mobile phones constituted about 61% of India’s electronics exports last year, a significant jump from roughly 4% in 2014-15.

Strategic Goals and Local Brand Support

The government’s vision extends beyond mere assembly, aiming to develop a comprehensive manufacturing ecosystem. This includes enhancing global competitiveness and expanding domestic supply chains.

Electronics and IT Minister Ashwini Vaishnaw noted that Apple’s manufacturing footprint in India could eventually encompass a wider array of hardware, leveraging existing iPhone production infrastructure. This aligns with the broader goal of accelerating localization across the sector.

• Indian smartphone brands receive a 5% incentive on eligible sales.
• An additional 3% incentive is provided for Indian design and research and development efforts.

This comprehensive framework is designed to encourage both international manufacturers and local companies, solidifying India’s role as a global export hub for mobile phones.