India has reportedly proposed a new set of incentives aimed at boosting smartphone exports.
According to Bloomberg, sources say the country is preparing a new round of incentives that would tie government subsidies to export performance and the greater use of locally produced components, a move expected to benefit Apple, Samsung Electronics, and other phonemakers.
As the report indicates, the proposal—effectively a second phase of New Delhi’s flagship smartphone production program—would reward companies for exporting devices overseas. Unlike the current Production-Linked Incentive (PLI) program, which expires on March 31 and focuses mainly on incremental domestic output, the new plan would link incentives directly to exports and localisation.
The policy design, incentive size and overall budget are still being finalized and could change during inter-ministerial consultations, the report adds.
Last month India’s government approved regulatory changes that will allow Apple to directly finance iPhone manufacturing equipment in the country without additional taxes, reports Reuters (a subscription is required to read the article).
The tech giant had been lobbying India’s government to modify its income tax laws to ensure it’s not taxed for ownership of the high-end iPhone machinery it provides to its contract manufacturers.
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