India is developing new manufacturing incentives to capture more iPhone production as its current $21 billion production-linked program expires in March 2026. Government officials in New Delhi are consulting with smartphone makers about a revamped subsidy system that would tie future incentives more closely to export performance. The policy aims to strengthen India's position as both a production center and export hub for Apple's supply chain.

India's electronics sector currently produces nearly $60 billion worth of mobile phones annually, with Apple's iPhone supply chain accounting for a significant share of those exports. Most iPhones assembled in India by Foxconn and other contract manufacturers are shipped overseas, particularly to the United States. The new program could apply to investments beginning in April 2026, reflecting India's growing role in Apple's manufacturing diversification strategy.

Apple has steadily expanded iPhone production in India, with estimates suggesting the country now accounts for roughly a quarter of global iPhone output after production surged to 55 million units in 2025. While China still dominates Apple's supply chain, India is becoming the company's second major iPhone production base. Government subsidies help offset higher assembly costs in India, which can be 5-10% more expensive than in China due to imported components.