Apple’s Team To Fly Down To India For Discussing Production & Factory Plans

 

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The Apple team is all set to meet the Indian Government officials next week to discuss and plan the setting up of the proposed production unit in Bangalore. They are flying down from the US to present the company’s case and to seek tax and revenue benefits from the government. Officials from various departments such as industry, revenue and information technology are expected to be present in the meeting that is to be held in New Delhi.

Apple is bound and determined to begin the assembly operations and hence full manufacture is set to begin by the end of next year.

The American multinational, with headquarters in Cupertino, California, has been seeking tax and labeling concessions as a precondition to setting up a production base in India. Apple has reportedly asked for a 15-year renunciation in custom duties and relaxed labeling norms on its products.  Earlier, in order to open Apple retail stores in India, the company had sought exemption from the 30 percent local sourcing rule. The finance ministry did not allow the exemption.

Apple has been turning its attention to India, ever since the sales in China has fallen. The smartphone giant had tried to get permission to open its own stores in the country early last year which had eventually been turned down by the government.

 The Government officials expressed difficulty in making an exception for the concession demanded by Apple, while discussing the company’s wish list. The company does not wish to source locally and has seeked  reduction in the duty on components of the iPhone.

Several mobile handset makers like Huawei and Xiomi from China manufacture products in India and receive benefits under Modified Special Incentive Package Scheme as a part of the Make In India campaign launched by the Indian Prime Minister Mr.Narendra Modi.

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