Apple iPhone To Be Manufactured in India As Apple Plans Manufacturing Unit
Apple is all set to meet the Indian Government to discuss the possibility of setting up a manufacturing unit in the country. A team of senior Apple Inc. executives are scheduled to arrive next week, to present to the company’s case for seeking tax benefits and other exemptions.
The tech giant is said to be seeking a host of incentives and concessions from the Indian Government on the ground that it makes state-of-the-art and cutting-edge technology products for which local sourcing is not possible.
Concessions include a 15-year holiday on customs duty, relaxed labelling norms and duty-free imports on spare parts and used captial goods. Officials from departments of commerce, industrial policy and promotion (DIPP), revenue, environment and forest, electronics and information technology (DeITY) will take part in the deliberations.
This comes ahead of Apple’s plans to set up a unit in Bengaluru to assemble their products. Reports suggest that Apple does not want to source products locally and has sought duty to be reduced on components for the iPhone.
At present, as many as 42 companies make mobile phones in India, including Chinese firm Huawei and Xiaomi. However, no firm has approached the government for any additional incentives. Apple sells its products through Apple-owned retail stores in countries like China, Germany, the US, among others. Currently, it has no wholly-owned store in India and sells its products through distributors.The finance ministry in May last year had rejected relaxing 30% domestic sourcing norms as sought by the company as a pre-condition of bringing in FDI to set up single-brand retail stores in the country. While the Government has not issued an official statement, sources say that they are open to discussing Apple’s wish-list. But, it may be difficult for the government to make exemptions for one company.