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India Prepares Second-Phase Smartphone Incentives Tied to Exports and Local Sourcing

Officials are weighing export-linked payouts that escalate with local content.

Overview

  • The plan would reward overseas shipments and offer higher subsidies at greater localisation thresholds, including for camera and display modules made in India.
  • Inter-ministerial consultations are in progress with industry participation, and the electronics ministry has not issued a public confirmation.
  • The current smartphone PLI expires on March 31, with the refreshed incentives expected to cover investments starting in April, according to Reuters.
  • Apple and Samsung are seen as primary beneficiaries as India pushes to deepen its role in global smartphone supply chains.
  • India produced nearly $60 billion worth of phones in FY2024–25 and exported about $21.7 billion, while a US court ruling scrapping a China levy could narrow tariff advantages for access to the US market.