Ashwini Vaishnaw Defends iPhone Manufacturing Subsidies

The Indian government is working to position the country as a global hub for iPhone manufacturing, seeking to attract international companies looking for alternatives to China. Recent international media reports raised concerns that subsidies provided to iPhone manufacturers using taxpayer money could pose risks to India’s economy. Responding to these concerns, Union Minister Ashwini Vaishnaw said the tax revenue generated from mobile manufacturing companies was significantly higher than the incentives provided by the government.

Vaishnaw stated that the electronics manufacturing sector has created employment opportunities for around 2.5 million people in India, including 1.2 million in mobile manufacturing. He said the government collected approximately ₹3.25 lakh crore in taxes while disbursing ₹19,000 crore to companies under mobile manufacturing incentive schemes. According to the minister, the government received ₹25,000 crore in direct taxes and ₹3 lakh crore through GST from the sector. He described the mobile Production-Linked Incentive (PLI) scheme as a success in terms of both economic growth and employment generation.