The Indian government has mandated that mobile phones include FM tuners. They’re asking manufacturers not to disable an existing FM radio feature; and also asking if FM radio can be added to phones if it’s not already there.
It’s just an advisory, though, so has no legal weight; The Register notes that it says “mobile phones” not “smart phones” (about 20% of the country still uses feature phones), and says that you can buy a phone with a year’s free calls for ₹1499 – about $18.30.
Probably not worth holding your breath that Apple will add an FM radio tuner in iPhone any time soon.
Also, of course, worth pointing out that AM radio on mobile phones isn’t a thing - for a graphic illustration of that, put your mobile phone next to an AM radio receiver. At least - almost not a thing. The Sony Ericsson R306 (review) did have AM in it. The CNET review when it came out in 2008 was headlined “This one’s for your nan”. Ouch.