In a big boost to Apple’s manufacturing ambitions in India, the Indian government has reportedly offered Apple the chance to import handset components, without paying any tax for it.
This means Apple can locally manufacture in the country by sourcing its components from its vendors outside India. However, this permission comes with the condition that Apple has to increase its local value addition (with respect to parts) over the due course of time.
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Reports suggest that Apple Inc is keen on expanding its contract manufacturer’s facility in Bengaluru, Ravi Shankar Prasad, the Union minister for Electronics and IT, was quoted as saying by Reuters.
It is clear that the iPhone maker seeks to broaden its base in India, which is pegged as one of the world’s biggest smartphone markets right now.
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A panel of ministries rejected that demand, and has offered a phased programme to increase the share of local production in the manufacturing. Aruna Sundararajan, Secretary at the Ministry of Electronics and IT was quoted saying.
We have offered them tax exemptions on those components which could not be manufactured in IndiaAruna Sundararajan, Secretary at the Ministry of Electronics and IT to Reuters
She added that local manufacturing component would have to be increased gradually.
Apple has agreed to increase local share in production over a period of time, but there was a difference between the plans of the two sides, she said. As of now, it’s not clear whether Apple has agreed to the conditions put in place.
The government of India wants Apple to increase value share addition in 3, 5, 7 and 10 years, building up to the working of its local manufacturing in the country.
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