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3 clusters · 10 sources · 30 days · First seen · Last updated

India expands iPhone and mobile manufacturing footprint

Overview

India has rapidly scaled up iPhone assembly, with Foxconn operating large plants in Tamil Nadu and near Bengaluru and Tata Electronics expanding its facilities to employ tens of thousands of workers. The country's share of global iPhone output is projected to rise from about 6% in 2022 to over 25% by 2026.

To support this growth, the Indian government has proposed extending tax exemptions for foreign companies supplying machinery and components to contract manufacturers until March 31, 2041. This draft amendment also aims to exempt income from storing parts in customs-bonded warehouses and ease tax rules for foreign data-center users. Riaz Thingna, a partner at Grant Thornton Bharat, noted that these changes will help foreign companies mitigate supply chain disruptions while providing “greater tax certainty.”

Beyond Apple, the government is working to strengthen the broader domestic mobile ecosystem. Electronics and IT Minister Ashwini Vaishnaw stated that officials are working with Apple to potentially broaden operations beyond assembly into component manufacturing and design. Google is also expected to shift significant export-oriented production, including Pixel smartphones, watches, and wireless earbuds, from China to India and Vietnam by 2027.

To facilitate these shifts, the government introduced the Mobile Phone Manufacturing Scheme (MPMS) for FY27 to FY31, with an outlay of Rs 62,500 crore. The scheme provides incentives for mobile phone sales and encourages domestic sourcing of components like batteries and camera modules, while offering a 3% incentive on R&D programs to foster local intellectual property.

Entities

Government of India · Google · Apple Inc. · Riaz Thingna · Ashwini Vaishnaw

Timeline

  1. 25 days ago

    [BUSINESS] 2 sources
    Apple and Google to expand manufacturing footprint in India

    Apple and Google are set to expand manufacturing in India, supported by a new Rs 62,500 crore government scheme aimed at boosting local component sourcing and design capabilities.

  2. about 1 month ago

    [BUSINESS] 8 sources
    India extends tax breaks for foreign equipment suppliers, boosting Apple

    India will extend tax breaks for foreign equipment suppliers to 2041, a win for Apple as it expands iPhone production in the country and seeks tax certainty for its contract manufacturers.

  3. about 2 months ago

    [BUSINESS] 2 sources
    India Accelerates iPhone Assembly, Hiring Tens of Thousands Amid Supply‑Chain Trust Concerns

    India now assembles all iPhone models, hiring tens of thousands at Foxconn and Tata Electronics plants; a June cyber‑attack on Tata raises supply‑chain trust issues as the country aims to boost its production‑a

Sources

analyticsinsight.net · apfelpage.de · guides.macrumors.com · iclarified.com · indiantelevision.com · mundoconectado.com.br · news24online.com · newsbytesapp.com · wixx.com · wsau.com

This summary has been updated 1 time: see revision history