Apple (AAPL) and Samsung are poised to benefit from a new round of smartphone manufacturing incentives India is drafting to boost exports and deepen the use of locally made components, Bloomberg reported, citing unnamed sources familiar with the matter.
The proposed program would serve as the second phase of the government's flagship Production-Linked Incentive (PLI) scheme for smartphones, which expires March 31, the report said.
Unlike the current program that mainly rewards incremental domestic production, the new plan would tie subsidies directly to exports and higher levels of local value addition, it added.
Apple's contract manufacturers account for roughly three-fourths of India's smartphone exports. Their expansion has helped turn India into one of the fastest-growing handset export hubs, according to Bloomberg.
The report said the policy design, incentive size and overall budget are still being finalized.
Apple did not immediately respond to MT Newswires' request for comment.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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