India offers Samsung and iPhone suppliers new incentives to boost local production

India is giving more than a dozen companies new incentives to invest in the country’s smartphone industry, bolstering an ambitious campaign from Prime Minister Narendra Modi to rebrand the country as the world’s next manufacturing hub.



a person holding a camera: An employee tests the camera quality of mobile phones on an assembly line in the mobile phone plant of Rising Stars Mobile India Pvt., a unit of Foxconn Technology Co., in Sri City, Andhra pradesh, India, on Thursday, July 11, 2019. Foxconn, also known as Hon Hai Precision Industry Co., opened its first India factory four years ago, it now operates two assembly plants with plans to expand those and open two more. The company was integral to Chinas transformation into a manufacturing colossus, and founder Terry Gou has told India's Prime Minister Narendra Modi that Foxconn could help India do the same. Photographer: Karen Dias/Bloomberg via Getty Images


© Karen Dias/Bloomberg via Getty Images
An employee tests the camera quality of mobile phones on an assembly line in the mobile phone plant of Rising Stars Mobile India Pvt., a unit of Foxconn Technology Co., in Sri City, Andhra pradesh, India, on Thursday, July 11, 2019. Foxconn, also known as Hon Hai Precision Industry Co., opened its first India factory four years ago, it now operates two assembly plants with plans to expand those and open two more. The company was integral to Chinas transformation into a manufacturing colossus, and founder Terry Gou has told India’s Prime Minister Narendra Modi that Foxconn could help India do the same. Photographer: Karen Dias/Bloomberg via Getty Images

The program includes 16 companies involved in making smartphones and components, including Samsung, Austria’s AT&S and several Indian firms. Major Apple suppliers Foxconn, Wistron and Pegatron are participating as well — notable inclusions, given how much Apple has been pushing to grab a larger slice of one of the world’s fastest growing smartphone markets.

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The companies have to increase their production of smartphones in the country to benefit, according to a Tuesday statement from India’s Ministry of Electronics and Information and Technology. They will get incentives worth between 4% and 6% of the sales of certain products made in India over a period of 5 years.

The incentive program is expected to bring 110 billion rupees ($1.5 billion) worth of investment to the country’s electronics manufacturing industry, according to the government statement.

The government’s decision to incentivize smartphone makers isn’t a huge surprise. The industry has been