Apple executives submit proposal to set up iPhone manufacturing unit in India
They met Nirmala Sitharaman to pitch the idea, which will now be examined by the Ministry of Electronics and Information Technology.
Apple Inc on Wednesday presented the government with its framework to begin manufacturing iPhones in India. The company has sought fiscal concessions such as customs duty waivers on import of components, PTI reported.
A team of senior executives from Apple, including Global Vice President Priya Balasubramaniam, made a detailed presentation to a group of government officials headed by Department of Industrial Policy and Promotion Secretary Ramesh Abhishek. The proposal will now be examined by the Ministry of Electronics and Information Technology. Balasubramaniam also met Commerce and Industry Minister Nirmala Sitharaman on Wednesday to pitch the idea.
Apple, which is looking to set up a local manufacturing unit in India, also sought exemptions to the rule that makes it mandatory for companies to procure 30% of components from local sources. The tech major also asked for added benefits under the Modified Special Incentive Package Scheme provided by the Indian government. Apple will assemble phones in India at partner Wistron Corp’s facility in Bengaluru, reported The Economic Times.
The company wants the duty on components to be brought down from 12.5% and zero duty on some key ones. Apple hinted that India could be a big assembly centre, given its huge home market, and its position can be used to supply to neighbouring Asian and African nations, reported The Telegraph.
The Centre is considering certain relaxations in electronic manufacturing for Apple, reported Hindustan Times. The company has sought higher exemptions since there are not many high-end phone component makers in India to buy from, government officials told the English daily.