January 7, 2025 – The Indian government is contemplating the introduction of new subsidy policies to bolster electronic component manufacturers, according to a report by Bloomberg today. Additionally, plans are underway to reduce import tariffs, aiming to foster the growth of local manufacturing, particularly targeting smartphone manufacturers like Apple.
Insiders revealed that the Ministry of Electronics and Information Technology has proposed a fiscal support of at least 230 billion rupees for producers of electronic components such as batteries and camera parts.
Furthermore, the ministry has also suggested lowering import tariffs on certain electronic components. This measure is expected to help reduce production costs, aligning with industry demands.
The final decision on these proposals, if approved, will be made by the Indian cabinet, and further details may be announced in the government’s budget in February.
The Modi administration has already invested heavily to attract multinational giants like Apple and Samsung to set up factories in India, resulting in a significant increase in iPhone exports.
Currently, the Indian government aspires to leverage this momentum to develop a broader supply chain for smartphones. This is particularly relevant as many smartphone manufacturers rely heavily on importing electronic components from countries like China.
Last year, a government think tank, Niti Aayog, recommended in a report that the Indian government should adjust tariffs appropriately and provide additional fiscal incentives to stimulate the growth of the domestic electronic component industry. The Niti Aayog study also indicated that India’s current tariffs on electronic components, ranging from zero to 20%, are approximately 5%-6% higher than those in China and Malaysia.
