Apple seeking incentives to set up manufacturing unit in India

Apple wants incentives from the Indian government to set up a manufacturing unit in the country.

In a communication to the government, the Cupertino major has asked for incentives related to the Department of Revenue and Department of Electronics and Information Technology (DeITY), an official told PTI.

"They are doing their due diligence from quite some time. The Department of Industrial Policy and Promotion (DIPP) will write to both the departments regarding this communication for their views," the official added.

At present, to boost electronic manufacturing in the country, the government provides benefits under Modified Special Incentive Package Scheme (MSIPS) offering financial incentives to offset disability and attract investments in the electronics hardware segment. It also gives subsidy for investments in Special Economic Zones, among other benefits.

Notably, in May, the Finance Ministry had rejected relaxing the 30 percent domestic sourcing norms, as sought by the iPhone-maker as a pre-condition for bringing in FDI to set up single-brand retail stores in the country. Apple said that it makes state-of-the-art and cutting-edge technology products for which local sourcing is not possible.

The government had also turned down the firm's proposal to import refurbished phones and sell them in India.

Currently, Apple's products are manufactured in six countries including Korea, Japan, and the US. In India, Apple has no wholly-owned store and sells its products through distributors such as Redington and Ingram Micro.