January 8, 2025 /SemiMedia/ — Sources indicate that the Indian government is planning to offer new subsidies to electronic component manufacturers and reduce import duties to support the growth of local manufacturing, particularly in smartphone production, including Apple’s iPhone.

According to Bloomberg, the Ministry of Electronics and Information Technology (MeitY) has proposed a subsidy of around ₹23 billion (approximately $2.7 billion) to support manufacturers of components such as batteries and camera parts. Additionally, the ministry has recommended lowering import duties on certain electronic components, responding to industry requests, to reduce production costs.

The proposed subsidies would apply to components like microprocessors, memory chips, multilayer printed circuit boards, camera lenses, and lithium-ion batteries, with subsidy amounts varying by component type. Research by Niti Aayog shows that India currently imposes import duties on electronic components ranging from 0% to 20%, which is 5%-6% higher than countries like China and Malaysia.

If the proposal is approved, details could be revealed in the government’s budget announcement in February 2025.