Key Takeaways
- India’s Budget 2026 extends a key 2.5% import duty on phone parts until 2031.
- The move is a major win for Apple, providing long-term cost certainty for iPhone makers like Foxconn and Tata.
- It aims to shift India from assembly to full-scale component manufacturing, rivalling China and Vietnam.
In a significant policy boost, the Indian government has extended a crucial tax relief for mobile phone components until 2031, clearing the path for faster and larger-scale iPhone manufacturing in the country by Apple and its partners.
The Union Budget 2026 has proposed a five-year extension of the concessional 2.5% import duty on parts like PCBAs, camera modules, and connectors. This duty was set to lapse in March 2026.
A Strategic Win for Apple’s India Plans
This policy stability is a major victory for Apple and its contract manufacturers—Foxconn, Pegatron, and Tata Electronics. The long-term roadmap provides the cost certainty needed to encourage deeper investment in local production facilities and supply chains.
The concessional duty was first introduced under the Production Linked Incentive (PLI) scheme. Its extension underscores the government’s firm commitment to positioning India as a global electronics manufacturing hub.
Beyond Assembly: Building a Component Ecosystem
Industry analysts note this move will help Apple increase the local value addition in iPhones made in India. More importantly, it is expected to attract other global smartphone brands to expand their manufacturing footprint beyond simple assembly.
The ultimate goal is to develop a full-fledged component manufacturing ecosystem within India over the coming years, directly competing with established bases like China and Vietnam.
