The Government of India is preparing a new subsidy scheme to boost smartphone manufacturing in the country.
The plan is expected to replace the existing Production Linked Incentive Scheme (PLI).
The new program aims to encourage companies to export more smartphones from India while also using more locally made components.
Major tech companies such as Apple and Samsung Electronics are expected to be among the first to benefit.
The move could also help companies manage rising production costs as the global supply of key components like RAM and processors remains tight.
Focus on Exports and Local Components
The upcoming scheme is designed to reduce India’s reliance on imported smartphone components from countries such as China, South Korea, and Taiwan.
Under the plan, companies will receive higher financial incentives if they use more parts made in India.
For example, smartphones that include locally produced camera modules, displays, or other key components could qualify for larger tax benefits.
This approach is intended to strengthen India’s domestic manufacturing ecosystem and support local component suppliers.
Building on the Success of the PLI Scheme
The new subsidy program is expected to build on the success of the current PLI scheme.
Thanks to the initiative, more than 95 percent of smartphones sold in India are now assembled locally.
However, many of the parts used in these devices are still imported.
The next phase of government policy aims to increase local value addition by encouraging companies to produce more components within the country.
India’s smartphone exports have already seen strong growth.
According to industry data, exports rose by more than 40 percent last year, showing the growing strength of the country’s electronics manufacturing sector.
Big Tech Companies Expected to Benefit
Several major smartphone brands are likely to benefit from the new scheme.
These include companies such as OPPO, Vivo, and Xiaomi.
Apple, which has significantly expanded its manufacturing operations in India, could see even greater gains.
The company has become a major contributor to India’s smartphone exports since it started producing newer iPhone models locally.
Meanwhile, Apple’s manufacturing partner Foxconn is reportedly planning a $1.5 billion upgrade of its production facilities in India.
‘Make in India’ Vision Gets a Boost
The new subsidy plan is part of the broader Make in India initiative.
The government’s goal is to transform India from a simple assembly hub into a key player in the global electronics supply chain.
Instead of only assembling smartphones with imported parts, India wants to become a major producer of high-value components.
Challenges Still Remain
Despite the progress, the industry still faces challenges.
Local production of components remains limited due to skill gaps, technology barriers, and difficulties in sourcing raw materials.
However, the new subsidy program could attract more global suppliers and encourage them to set up manufacturing units in India.
With India exporting around 300 million smartphones last year, industry experts believe the sector could grow to $100 billion by 2030, further strengthening the country’s position in global technology manufacturing.
