India is drafting a new round of smartphone manufacturing incentives that will link government subsidies to exports and deeper use of locally made components, benefiting Apple Inc., Samsung Electronics Co. Ltd. and their suppliers.
The proposal, a second phase of India's flagship production-linked incentive scheme for smartphone manufacturing, will start rewarding companies for shipping devices overseas.
Unlike the current scheme, the new plan ties benefits to exports and localisation, with devices meeting higher localisation thresholds and being exported receiving the maximum subsidy.
The overhaul of India's Smartphone PLI Scheme underscores Apple's growing importance to India's electronics ambitions, with the iPhone maker's contract manufacturers accounting for roughly three-fourths of the country's smartphone exports.
India's Ministry of Electronics and Information Technology did not immediately respond to an email seeking comment.
