India Grants Apple Tax Break, Paving Way for Enhanced iPhone Production

Apple Receives Tax Break in India, Bolsters iPhone Production

The Indian government has granted a tax break to companies like Apple and Samsung, aimed at making the assembly of iPhones more cost-effective within the country. This tax relief is expected to be worth around $2.7 billion and includes the removal of import duties on key components such as printed circuit boards, camera modules, and USB cables.

India's Role in iPhone Manufacturing

After China, India has become Apple’s second-largest center for iPhone assembly. While reports have suggested that half of all iPhones could be made in India by 2027, the actual progress has been gradual. However, there has been a significant increase in production recently, with around one in seven iPhones now being manufactured in India. The introduction of the iPhone 16 marked a turning point, as it was produced in India shortly after its global launch.

Government Incentives

The Indian government's decision to reduce and remove import duties on essential components is part of a broader strategy to encourage more manufacturers to shift their production to India. This move is seen as a strategic gamble by the government, aimed at making India a major hub for smartphone manufacturing and potentially reducing dependence on imports.

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