Apple Could Start Manufacturing In India – If It Agrees To ‘Employment/Investment’ Demands

The news regarding Apple entering India for setting up a manufacturing unit seems to be picking pace now. In a report by ET, a senior government official disclosed that Apple’s proposal might be given consideration if the Cupertino Giant promises to invest huge funds in India and also to create job opportunities.

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Indian government seeks a sound investment plan from Apple for allowing it to enter the manufacturing arena in India. However, the government will not take any step that shall peril the momentum of mobile production in the country. Commenting on Apple’s proposal, an anonymous government official said to ET,“They have just sent it (the request). We will examine it. There are two things: First, there are almost 40 mobile manufacturing units (in India). We don’t want to disturb them. Second, we will have to see how much volume they will put out, how many jobs they will create,”

Apple is reportedly seeking tax and labelling relaxations from the Indian government. The company wants to avoid putting up product-related information directly on its devices as it compromises with the design language. Regarding tax incentives, the Indian government is reviewing the proposal, but it has its own set of pre-requisites that Apple has got to address beforehand.

In November, the Department of Industrial Policy and Promotion (DIPP) furthered Apple’s application to the Department of Revenue and Ministry of Electronics and Information Technology (MeitY).

Presently, Apple manufactures its products in six nations, among which China is its major production partner. Talking about Apple’s production unit in China, the government official said,“Their factory in China gives jobs to 10 lakh people. If they say they will put five factories in India and give employment to 10 lakh people or say we will give you Rs 5,000 crore of excise duty, we may think about it (Apple’s demands),”

This is not the first time when Apple’s proposal for setting up business in India is under review by the government. The government had rejected Apple’s earlier proposal for setting up its own retail outlets and selling refurbished phones in India.

Various reports also tip that Apple is considering Bangalore to be its assembling hub. If the company’s proposal gets accepted by the Indian government then it might begin assembling operations in Bangalore’s industrial hub – Peenya by April.

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5 Comments on "Apple Could Start Manufacturing In India – If It Agrees To ‘Employment/Investment’ Demands"

 

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DGupta
January 3, 2017 4:25 pm 4:25 PM
Apple cheats all countries on corporate income taxes, by showing large costs of IP based out of low tax/ tax haven countries like Ireland. So, even if you give them assembly concessions, China will get lion’s share of the cost as components and Ireland will still get the lion’s share of profit. So, what benefit India gets from Apple? Even if Govt of India agrees, Apple will just assemble phones in India. This is not high skill or high tech manufacturing. We should not provide incentives for such assembly operations. —- Instead, we should increase the duty differences between local… Read more »
Kirti Khurana
January 2, 2017 9:31 am 9:31 AM

hope to see an iphone around 40k, India could shift from second hand iPhone users to new iPhones only if Apple take India serious.

d5aqoëp
January 2, 2017 12:08 pm 12:08 PM

With local manufacturing, Apple will keep prices same as current but increase their own profit margins. How naive of you to say that prices will reduce!

Corporate greed at it’s finest.

The only good thing to come out of it will be Apple’s push to have their own retail stores. The service there is first class absolutely unmatched by zopadpatti type service centres of Samsung/LG who like to keep your phone for weeks or months. Apple store phone service is usually straight swap of problematic phone with a new piece.

Kirti Khurana
January 3, 2017 1:46 am 1:46 AM

the price will be significantly drop, local prod. (+ cheap labour )means no custom charges for brand new imported phone + 100% FDI in retail for even iphones will drop prices upto some extent as currently 3rd party stores selling premium iPhone with huge margings, if that two things happended i see phones costs same as 649 dollars tag
1 more thing to consider western world is bored or iPhones many are switching to Android alternates.

A C
January 2, 2017 10:54 am 10:54 AM

No bro they won’t cut their rate in India

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