India to offer subsidized loans to entice Apple and Samsung suppliers to its shores

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What you need to know

  • India is reportedly planning to offer Apple and Samsung suppliers subsidized loans.
  • It is hoped the initiative will tempt new suppliers to open factories in the nation.
  • The country also plans to set up industrial zones with taxation and customs clearances and infrastructure.

A report suggests that India is planning to offer Apple and Samsung suppliers subsidized loans in the hope that they will open factories in the nation.

According to Bloomberg, a government official revealed the plans, which are set to be announced on February 1 as part of the new federal budget.

According to the report:

The proposals by the Ministry of Electronics and Information Technology includes offering interest subsidy on local borrowing by manufacturers, may form part of the federal budget to be unveiled on Feb. 1, the official said, asking not to be identified citing rules on speaking to the media. It also includes setting up of industrial zones equipped with taxation and customs clearance, along with infrastructure such as roads, power, and water supply, the official said.

India currently makes around $24 billion worth of phones but hopes to multiply that to $190 billion by 2025. Apple already makes some iPhones in India and has apparently pledged to increase its presence in the nation over the next five years. One of its main suppliers, Foxconn, already has two factories in the south of the country where it makes devices for Xiaomi and Nokia. Given trade tensions between the US and China, the report notes that this could give manufacturers the opportunity to diversify their manufacturing efforts away from China.

If the proposals are taken forward, India will shift its export focus North towards Europe and the US.

Stephen Warwick
News Editor

Stephen Warwick has written about Apple for five years at iMore and previously elsewhere. He covers all of iMore's latest breaking news regarding all of Apple's products and services, both hardware and software. Stephen has interviewed industry experts in a range of fields including finance, litigation, security, and more. He also specializes in curating and reviewing audio hardware and has experience beyond journalism in sound engineering, production, and design. Before becoming a writer Stephen studied Ancient History at University and also worked at Apple for more than two years. Stephen is also a host on the iMore show, a weekly podcast recorded live that discusses the latest in breaking Apple news, as well as featuring fun trivia about all things Apple. Follow him on Twitter @stephenwarwick9