The government on Wednesday said it has not accepted ‘most of the demands’ of iPhone maker Apple which wants to set up a manufacturing unit in India. To a question in Rajya Sabha on whether the government has accepted most of the demands of the iPhone manufacturer, commerce and industry minister Nirmala Sitharaman said: “No”.
Apple India has sought concessions including duty exemption on manufacturing and repair units, components, capital equipment and consumables for smartphone manufacturing and service/repair for a period of 15 years, she said in a written reply.
In a communication to the government, the Cupertino-based technology major has asked for incentives from the Department of Revenue and Department of Electronics and Information Technology (DeITy).
Apple also wants relaxation in the mandated 30% local sourcing of components. It also wants a reduction in customs duties on completely- knocked-down and semi-knocked-down units of devices that are to be assembled in the country.
In January, Apple had indicated to the government that it is ready with a blueprint to begin manufacturing iPhones in India but wants fiscal concessions, including Customs duty waiver on the import of components. Apple executives had made a detailed presentation to an inter-ministerial group headed by Department of Industrial Policy and Promotion secretary Ramesh Abhishek on its roadmap.
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With sales tapering in the US and China, Apple is eyeing India — the fastest-growing smartphone market in the world — and looking to set up a local manufacturing unit to cut costs. It, however, does not manufacture devices on its own and does it through contract manufacturers.
The company sells its products through Apple-owned retail stores in countries like China, Germany, the US, the UK and France, among others. It has no wholly-owned store in India and sells its products through distributors such as Redington and Ingram Micro.
