India Gives Apple Cheaper Alternative For iPhone Assembly in the Country With Tax Break

India is giving iPhone maker Apple the chance to make iPhones at a cheaper cost in the country by rolling out a tax break.

The change was shared by the government this past weekend and can give rise to serious benefits worth a staggering $2.7 billion. This is designed to promote Samsung and Apple to assemble more phones in the nation.

In case you’re wondering, the news can assist Apple as India is the company’s second biggest production hub after China. It also validates previous reports about how more than 50% of all iPhones could be designed in India over the next two years. But from the way things are unfolding right now, the process might be a slow one.

Matters really stepped up in 2024 as Bloomberg shared that one in seven smartphones of Apple were made in the country. However, this did not include the flagship designs as it needed more advanced processes for production. This changed with iPhone 16 whose production began just a few weeks after the launch arose.

The latest change has to do with Apple receiving a tax break in terms of less import duties on various electronic features imported inside the country for local production. This gets a further extension now. As per reports from Reuters, taxes for circuit boards were among the iPhone parts getting zero ratings.

For now, India has gotten rid of all import duties on various essential components needed to manufacture mobile phones. This was reiterated by the country’s finance minister while sharing the yearly budget this past weekend. The list includes parts needed for smartphone production like printed circuit boards, camera module pieces, and cables for USBs. Before, these all came with a 2.5% tax.

This move will give rise to the most cost-effective iPhone manufacturing in India. The government gambles that it could motivate Apple to shift more production plants in the country as a result.

Image: DIW-Aigen

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