Will Apple meet its Spring deadline to open local manufacturing shop in India?

By : |January 20, 2017 0

Though both Apple and Indian government are willing to open a local iPhone assembling unit in the country, Apple’s long list of demands for concessions is proving to be the spoiler here.

Though the Information Technology Minister Ravi Shankar Prasad has said that India would keep an “open mind” in negotiations, Apple’s long list of demands, including tax concessions and several other policy exceptions, still faces resistance from officials who consider it excessive and unfair on foreign companies already operating in India. Among the requests, the company is seeking a 15-year tax holiday on imports of components and equipment, according to a person with direct knowledge of the matter.

The Cupertino giant is scheduled to meet with officials in New Delhi next week to discuss the prospects for setting up manufacturing facilities in the country this year. The Indian Express newspaper reported Apple wants full exemption from duties on raw materials, components and capital equipment.

Apparently, when Indian PM Narendra Modi and Cook met in May last year, they agreed to work towards a “package” of four projects: assembling iPhones, opening Apple stores, importing certified pre-owned iPhones and refurbishing them in India. Apple also added that its initial focus was to set up manufacturing units in India over two phases, the first of which was to be introduced by spring this year.

There have been a lot of meetings between Apple and India’s officials in the past few months but next week’s meeting will be crucial. If the government gives in to Apple’s demands, it may have to offer similar incentives to other global brands, such as Samsung Electronics Co. and Xiaomi Corp.

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