India Defends iPhone Manufacturing Incentives Amid Economic Debate

India’s electronics minister has defended the government’s mobile manufacturing incentive program, citing significant tax gains and job growth following reports that questioned the long-term economic impact of the policy. Union Electronics and IT Minister Ashwini Vaishnaw released data on October 27, 2026, to counter criticism that the Production Linked Incentive (PLI) scheme relies too heavily on imported components and government subsidies.

Key Takeaways

• Increased output: Apple assembled approximately 55 million iPhones in India in 2025, representing a 53% increase from the previous year.
• Market share: India currently accounts for about 25% of Apple’s global iPhone production.
• Incentive balance: The government reported paying ₹19,000 crore in incentives while generating ₹25,000 crore in direct tax collections.
• Job creation: Electronics manufacturing now supports 25 lakh jobs in India, with 12 lakh positions specifically within the mobile manufacturing sector.
• Tax revenue: The broader electronics sector has contributed ₹3 lakh crore in Goods and Services Tax (GST) revenue.

Economic Impact and Criticism

The defense follows recent analysis suggesting that India’s manufacturing growth may not yet match the depth of China’s supply chain. Critics have raised concerns regarding the sustainability of government subsidies used to attract foreign manufacturers and the heavy reliance on imported parts for assembly. Vaishnaw dismissed these criticisms, pointing to the net positive tax revenue generated by the industry as evidence of the program’s success.

India has positioned itself as a primary alternative manufacturing hub to China. The government maintains that the influx of assembly operations serves as a foundational step toward broader high-tech industrial independence, despite skepticism regarding the current depth of local value addition.