iPhone manufacturing in India gets a tariff boost

As reported by Reuters, India continued its push to become a larger electronics manufacturing hub today by removing import duties on select parts used in smartphones and other devices. Here are the details.

India cuts electronics tariffs

According to the report, India has removed tariffs of 7.5% and 5% on several key parts used in the manufacture of mobile phones and other electronic devices.

From the report:

Items include key parts for producing wireless charging modules for mobile phones, displays for medical devices and automobiles, and lithium-ion cells.

Reuters says this is part of India’s plan to boost local electronics manufacturing to US$500 billion over the next four years, with these exemptions valid until March 31, 2029.

For Apple, the move could further accelerate its push to expand iPhone production in India, as the company works to reduce its reliance on China.

Here’s Manoj Mishra, a partner at business consultancy Grant Thornton Bharat, who spoke to Reuters on what the tariff cuts could mean:

“This should boost cost ​competitiveness, domestic value addition and localisation of ‌high-value ⁠smartphone and electronics manufacturing.”

He also added that “exemption for lithium-ion cell manufacturing ​may spur ​investment ⁠in domestic battery production for electronics and electric mobility.”

Apple’s iPhone manufacturing structure in India has been a hot topic for the last few weeks after iPhone manufacturer Tata suffered a data breach in which more than 200,000 files were reportedly stolen and shared on the dark web.

Tata has also been facing scrutiny over alleged water contamination near one of its iPhone parts factories in India, after local farmers complained about wastewater affecting nearby land and water sources.

To read Reuters’ report, follow this link.

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