India is considering more incentives to capture a larger share of iPhone production

India is considering new manufacturing incentives in an effort to shift production of the iPhone and other smartphones out of China, and to stall any move to move it to the US.

Close-up transparent view of a smartphone's internal components, showing camera lens, sensors, circuit boards, and wiring arranged neatly against a dark background

iPhone Air internal components

Officials in New Delhi are working on a new version of India’s production-linked incentive program. The subsidy program, which has been crucial in attracting smartphone manufacturing, will expire in March 2026.

The program helped attract major manufacturers, and the next phase could tie incentives more closely to export performance. The policy reflects India’s growing role in Apple’s supply chain as the company steadily increases iPhone production outside China.

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