iPhone manufacturing in India: Govt says can’t give special treatment to Apple

iPhone manufacturing in India: Govt says can’t give special treatment to Apple

Apple is seeking some special concessions and tax breaks from the Indian government to make iPhones. But the government has said that it would be not offer anything special Apple, notes a new report that came out on Thursday.

The Print reported on Thursday that the Department of Industrial Policy & Promotion has refused to offer special conditions to Apple for manufacturing of the iPhone in India. Apple reportedly wants full duty exemption on manufacturing and repair inputs, capital equipment, parts and consumables for smartphone manufacturing and service  and repair for 15 years. The company needs these concessions irrespective of whether it is making or repairing phones for India or for exporting them.

But the government is not in favour of any concessions. The Print writes, “In a communication dated 9 October 2017… the Department of Industrial Policy & Promotion has all but ruled out any further duty exemptions for Apple, or extending permission to repair and re-export used mobile phones for up to seven years, as requested by the Cupertino, US-based giant.”

 Apple is trying to get some concessions from the government for manufacturing operations in India for quite some time. Company CEO Tim Cook has repeatedly said that India is a very important market for Apple. However, the Apple products, particularly the iPhone, are very expensive in India and there is perception that local manufacturing of these phones may lead to lower prices of the iPhone.

Meanwhile, even as it waits for some government concessions, Apple has started manufacturing the iPhone SE near Bengaluru as a sort of pilot project before the company decides to also manufacture other and more high-end iPhones here.

Apple is also seeking concessions from the government for opening its exclusive stores in India. However, there the matter of contention seems to be the local sourcing clause, particular in relation to materials that Apple uses to create its stores. Some of this material probably has to be brought from outside India and for that Apple may need some special permissions from the government.

Source by: indiatoday