iPhone manufacturing will increase in India, Foxconn gets incentive of Rs 6,970 crore
The Karnataka government has given an incentive of about Rs 6,970 crore to Foxconn, a contract manufacturer of American devices maker Apple. Foxconn has a major stake in the manufacturing of Apple’s iPhone. It has manufacturing plants in India as well as China. The Karnataka government has given this incentive to Foxconn under a special scheme for the Electronics System Design and Manufacturing (ESDM) sector.
This Taiwanese company will soon start an iPhone assembly plant in Karnataka. About two crore smartphones will be assembled annually in this manufacturing plant. Karnataka plans to become a major manufacturing hub. Foxconn is the first electronics manufacturer to receive an incentive of such a huge amount. Under the ESDM policy, the Karnataka government gives various incentives. These include 25 percent subsidy on capital investment for land, 20 percent subsidy on manufacturing plant and machinery as well as full reimbursement of stamp duty, registration charges and land conversion fees.
Foxconn has also prepared to set up manufacturing units near Hyderabad in Telangana and Chennai in Tamil Nadu. Last year, Foxconn invested about Rs 1,200 crore in its subsidiary in India. Assembly of Apple’s recently launched affordable iPhone 16e has started in India. It will replace the iPhone SE introduced about three years ago. Apple has increased its manufacturing in the country in the last few years.
The iPhone 16e being assembled in the country will be exported to some countries along with sales in India. Earlier, the company’s iPhone 16 series is also being assembled in the country. Apple started manufacturing iPhone Pro models in the country for the first time with the iPhone 16 series. Earlier, the company’s Pro models were assembled in China. Foxconn is the company’s largest contract manufacturer. Some other contract manufacturing companies also assemble iPhones and other devices of the company. India’s Tata Electronics is also included in these. Apple plans to shift part of its iPhone manufacturing in China to India.
