Fuel Apple’s Expansion: Karnataka Grants Foxconn Rs 6,970 Crore to Boost Electronics Manufacturing
Foxconn is setting up an iPhone assembly plant near Doddaballapur and Devanahalli taluks in Bengaluru.

Leading Apple supplier Foxconn will be receiving an incentive of Rs 6,970 crore from the Karnataka government under special incentive scheme for Electronics System Design and Manufacturing (ESDM) sector, Chief Minister Siddaramaiah said in the state budget.
In the state, the company is setting up an iPhone assembly plant on a 300-acre plot in industrial areas in Doddaballapur and Devanahalli taluks in Bengaluru. The plant would assemble 20 million smartphones annually. Foxconn is the first electronics manufacturer to receive a large incentive, as the state looks to position itself as a leading manufacturing destination.
Foxconn is also establishing units in Hyderabad, Sriperumbudur near Chennai, and Sri City in Andhra Pradesh. In August 2024, Foxconn had made an investment of Rs 1,200 crore into its Indian subsidiary unit Foxconn Hon Hai Technology India Mega Development Pvt.
“Foxconn company has started a mobile phone manufacturing plant in Devanahalli Industrial Area with a capital investment of Rs 21,911 crore. This company will be provided with an incentive of Rs 6,970 crore by ESDM,” the CM said in his budget speech.
The Karnataka government had earlier noted that Foxconn is expected to generate 40,000 jobs predominantly for middle-educated individuals.
Foxconn’s growing presence in India augurs with its strategy to move beyond China, Taiwan and Vietnam. The company in total had invested around $1.4 billion in India, and its business in India has grown to over $10 billion till 2024, and it plans to clock higher business in the present year.
Under the ESDM policy, the Karnataka government offers various incentives, such as a 25% subsidy on capital investment for land, a 20% subsidy on plant and machinery, and full reimbursement of stamp duty, registration charges, and land conversion fees.
“Karnataka is known for its investor-friendly ecosystem for Industry. Our government is committed to job-centric and inclusive development of the Industrial and manufacturing sector,” the CM said in his budget speech.
Karnataka government has launched a new Industrial Policy 2025-30, aiming to achieve a 12 percent industrial growth and creation of 20 lakh jobs by 2030. Industrial sector has achieved 5.8% growth in current year. In order to attract large investments, the Government has made a commitment towards financial assistance and subsidies totaling to Rs 13,692 crore.