India is preparing a new set of incentives to boost smartphone manufacturing in the country, which could benefit brands like Apple and Samsung as global supply chains gradually shift away from China. According to a new report from Reuters, the Indian government is working on a fresh policy to support phone production after its current subsidy programme expires later this month.
India planning new incentives as PLI scheme expires by March 2026-end
The upcoming policy is expected to follow the expiry of India's Production Linked Incentive (PLI) scheme for smartphone manufacturing. Introduced back in 2020, the PLI scheme was to encourage companies to produce devices locally.
Additionally, the programme offered financial incentives tied to incremental production and helped attract billions in investment from global electronics makers and their suppliers.
The smartphone PLI scheme is valued at roughly $21 billion (approximately Rs 175,000 crore) and played a major role in expanding India's electronics manufacturing ecosystem, encouraging brands like Apple and Samsung to scale up production. It has been a key pillar of the Indian government's "Make in India" strategy to reduce dependency on imports and focus on domestic manufacturing instead.
According to Reuters, the new incentive programme could place greater emphasis on exports rather than simply boosting local output. The proposed framework may also link subsidies more directly to overseas shipments and the use of locally manufactured components. This will effectively create a second phase of India's smartphone production strategy.
Officials from India's Ministry of Electronics and IT have reportedly been consulting industry players to finalise the structure of the new policy, which could come into effect from April 2026, right after the PLI scheme expires.
The government's manufacturing push has already transformed India into a major smartphone production hub. As per the Reuters report, the country produced nearly $60 billion (approximately Rs 6,000 crore) worth of mobile phones in the 2024-2025 fiscal year, while exports reached around $21.7 billion, making smartphones India's top export category in 2025.
Apple has been one of the biggest beneficiaries of this shift, steadily expanding iPhone production in India. In fact, a recent Bloomberg report revealed how Apple's Made in India push hit a new milestone as 25% of global iPhones are now assembled locally.
Now, with the new policy on its way, the government seemingly hopes to further accelerate smartphone exports and strengthen India's position as a global electronics manufacturing powerhouse.
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