India is preparing a new round of incentives to strengthen domestic smartphone manufacturing as its flagship production support program for the sector approaches expiration this month. The planned measures are expected to encourage continued investment from global technology companies such as Apple and Samsung, which have expanded manufacturing operations in the country in recent years. The policy direction reflects India’s broader push to establish itself as a major global electronics production hub, a shift that NewsTrackerToday has previously highlighted in its coverage of global supply chain realignment.
Officials in New Delhi are exploring ways to replace the current production-linked incentive program with a new framework that may tie financial benefits more directly to export performance. According to government officials familiar with the discussions, the incentives could apply to investments beginning in April, reinforcing India’s competitiveness in global electronics manufacturing.
The government’s interest in extending support for smartphone production comes at a time of shifting geopolitical and trade dynamics. India has benefited in part from efforts by multinational companies to diversify supply chains away from China. However, recent legal developments in the United States – including a court ruling that invalidated a tariff related to fentanyl imports targeting China – could potentially reduce India’s relative tariff advantage in accessing the U.S. market.
Expanding domestic electronics manufacturing remains a central objective of Prime Minister Narendra Modi’s industrial strategy. The government aims to increase the country’s total electronics output to $500 billion by the 2030 fiscal year, positioning India as a leading alternative to China in global technology supply chains. Sophie Leclerc, technology sector analyst, notes that smartphone production has become one of the most visible examples of India’s rapid manufacturing expansion. Over the past decade, the country has increasingly attracted global electronics firms seeking to diversify production networks while maintaining access to large consumer markets.
Government data illustrate the scale of this transformation. In the 2024–2025 fiscal year, India produced nearly $60 billion worth of mobile phones – approximately 28 times more than a decade earlier. Exports have expanded even more dramatically, reaching about $21.7 billion during the same period. As NewsTrackerToday notes, smartphones have now become India’s single largest export category.
Much of this growth has been supported by India’s production-linked incentive program, a nearly $21 billion initiative designed to compete with China’s vast electronics manufacturing ecosystem. The program has encouraged major global brands and contract manufacturers to expand local assembly operations, gradually moving from basic models to more advanced devices.
Apple, for example, has steadily increased the share of its global iPhone production taking place in India. The company initially assembled lower-cost models in the country but has since begun producing some of its most advanced devices locally. Samsung has also expanded its manufacturing presence, using India both as a domestic production base and as an export platform. Daniel Wu, geopolitics and energy analyst at News Tracker Today, notes that electronics manufacturing has become closely tied to broader geopolitical considerations. As supply chains become more diversified, governments are increasingly competing to attract high-value production through subsidies, tax incentives, and infrastructure investments.
India’s Ministry of Electronics and Information Technology has already begun consultations with industry representatives to design the next stage of the incentive program. According to participants involved in those discussions, policymakers are exploring mechanisms that would encourage manufacturers not only to expand production capacity but also to strengthen export competitiveness.
From a broader perspective, NewsTrackerToday notes that India’s continued investment in smartphone manufacturing underscores how competition between global supply chain hubs is intensifying as governments seek to attract technology production and reduce dependence on single-country manufacturing networks.
