The Government of India is planning to offer subsidized loans to suppliers of Apple and Samsung, which would entice them to open manufacturing facilities in the country.
According to a new report from Bloomberg, the Indian government is trying to woo handset component suppliers and smartphone manufacturers by offering them subsidies on loan interest rates. The government hopes that suppliers would open more factories in the country, which would create jobs and increase the country’s exports. India hopes to see a 10x growth in mobile phone manufacturing by 2025.
The proposal by the Ministry of Electronics and Information Technology could be announced in the next budget session, which is scheduled to happen on February 1. The government also plans to offer industrial zones that have better customs clearance and taxation. Better roads, consistent power supply, and water supply are also said to be on the cards. The proposal has been forwarded to the finance ministry, but the final decision hasn’t been taken yet.
Over the past few years, Apple had been in talks with the Indian government to seek subsidies so that it can start manufacturing more phones in the country. The iPhone maker plans to reduce its reliance on China as trade tensions between China and the US grow. The Cupertino-based firm and its suppliers had invested $1 billion in India to increase the manufacturing of iPhones. The company is also planning to open Apple Stores in India.
Apple started manufacturing iPhones in India in 2017, and the models that are locally assembled include the iPhone XR. The company, whose suppliers in India include Foxconn and Wistron, is also rumored to start assembling the iPhone SE 2 (also rumored to named iPhone 9) exclusively in the country. The Indian government hopes that Apple and Samsung phones assembled in India will be exported to Europe and the US.