India Ditches Import Taxes on Key iPhone Parts, Paving Way for Expanded Production

India has taken steps to prepare its market against potential trade disruptions under a Trump Administration by eliminating import taxes on certain iPhone components. The Finance Minister, Nirmala Sitharaman, announced during her annual budget speech that components such as printed circuit board assembly (PCBA) and parts of camera modules will no longer face import duties. USB cables, previously taxed at 2.5%, will also be exempt from import taxes. This move is intended to incentivize companies like Apple to relocate manufacturing operations to India, reducing reliance on countries like China that may face tariffs. The removal of these taxes follows a previous reduction from 20% to 15% in 2024, which was estimated to boost Apple's annual earnings by $35 million to $50 million. Additionally, the government plans to offer subsidies totaling around $2.7 billion to attract more firms. India aims to manufacture 25% of all iPhones by 2028 as part of its strategy to become a key player in global tech manufacturing.