India targets Apple beyond iPhones as ₹62,500 crore mobile manufacturing scheme takes shape
India’s proposed FY27–FY31 mobile manufacturing scheme would offer sales-linked incentives of 2.25% to 5%, plus up to 1.5% for domestic sourcing, as it seeks more Apple and Google hardware production and higher local value addition.
What happened
India is seeking Apple production beyond iPhones and expects a significant share of Google’s export-oriented hardware manufacturing. A ₹62,500 crore mobile
Key facts
- Apple expected to account for about 26% of global iPhone production in 2026
- Mobile Phone Manufacturing Scheme outlay: ₹62,500 crore
- Scheme period: FY27 to FY31
- Sales incentives: 2.25% to 5%
- Additional domestic-sourcing incentive: up to 1.5%
- 99.2% of mobile phones used in India are manufactured domestically
- Domestic value addition reached 23% in FY24
Why this matters
Corporate development teams should assess Indian component suppliers, contract manufacturers and localization partnerships as Apple and Google expand production beyond final assembly.
What to watch
- Final FY27-FY31 scheme rules, eligible product categories, domestic-value-add definitions and incentive disbursement mechanics.
- Whether incentives apply meaningfully to components, tooling, repair parts and non-smartphone Apple/Google hardware.
- New supplier announcements from Apple-linked manufacturers and component firms, especially for displays, camera modules, batteries, enclosures and PCB assemblies.
- India mobile export growth, local-value-add percentages and the gap between announced versus operational capacity.
- Policy changes affecting import duties on components and finished devices, which will determine whether localization is commercially durable.
- Evidence that locally produced devices receive better availability, faster launches, lower repair costs or more competitive India retail pricing.
- Apple, Google and major EMS partners evaluate incremental India capacity for non-phone hardware, including wearables, tablets, accessories and repair/refurbishment operations.
- Component makers pursue joint ventures or local supplier partnerships to qualify for the additional domestic-sourcing incentive.
- Retailers and marketplace operators expand India-focused accessory, service, trade-in and certified-refurbished assortments as local availability of parts improves.
- Global procurement teams diversify India sourcing for export markets, particularly for products exposed to China concentration, geopolitical risk or import tariffs.
- Brands seek commitments on customs treatment, infrastructure, labor availability, export logistics and incentive payout timing before making major capex decisions.