Apple to Meet Government Officials on Jan 25 to Make its iPhones in India

Apple Inc

The news was really in buzz as two weeks prior to this, the Wall street Journal has reported Apple’s keen interest in making iPhone ‘Made in India’ for which they had been in talks with the State Government of Karnataka. According to a state govt official, Wistorn Corporation has also requested for quick processing of its application.

A managerial body of Apple, the US-based tech multinational is scheduled to meet some senior government officials of India for taking ‘Make In India’ plan to the fore. As per the official schedule, the administrative team of Apple will meet up a team of Indian officials on 25th January, from multiple ministries including IT and Finance for discussing the plans for Make In India.

India, with its fastest growing smartphone markets, is grabbing the eyeballs of the entire globe and Apple is on a fast move to make its way to the profitable Indian market. The US-based firm has been quibbling with Indian government officials for setting up its Apple exclusive outlets and manufacturing division across the nation since last year. However, due to some conditions, the endorsement from Indian government is still in the pipeline.

However, on 25th January, the Cupertino Goliath is expected to draw the long-lasting negotiation to an end over the plan of iPhone manufacturing in India. Among the Indian representatives, the officials from Ministry of electronics and information technology (DeITY), environment and forest, commerce, industrial policy and promotion (DIPP), revenue, IT, and Finance will sit in the discussions. Alongside the discussion over the manufacturing proposals, Apple’s representatives will also have a discussion over the conditions of immunities and inducements with regard to the same purpose.

In the last summit, the Cupertino-based tech giant has asked the Indian government for multiple taxes, immunities, and few other incentives, including long-standing duty exemptions, for entering into the manufacturing market of the country. On the other hand, the sources of Indian government confirmed that Apple will be asked for setting up the manufacturing unit in the country exclusive of any additional exemption or support. Previously, India government also has rebuffed the suggestion of Apple to introduce refurbished phones and put them on sale in India.

Currently, there are total 42 tech companies who are manufacturing their smartphones, including two Chinese brands like Huawei and Xiaomi. But thus far, no companies have asked for an extra favor, duty exemption or incentives. But Apple, with some out-of-the-way conditions, is requesting Indian government to permit its manufacturing unit and exclusive store in the country, which seems to unbefitting for the government. But Apple has sought for the immunity on the basis of its high-tech and forward-looking technology gadgets for which local financial sourcing is not promising.

Apple’s business in India saw 50% upward scale last year than previous with a sale of 2.5 millions of iPhones, according to a data from Hong-Kong based Counter-point technology Market research. The sales figure touched a rocket high Rs 9997 crore in 2016 which is just 1.5 times of what company had achieved in 2015. This is another reason for Apple on setting up a manufacturing plant.

Also through “Make in India” campaign, The Indian government is providing lucrative incentives to outside manufacturers to open their manufacturing site in India to eradicate job insecurity and to a stronger Indian economy. On same point, Apple has sought detailed clarification from the government. The company wants to know how exactly the incentives are going to make its decision budget friendly.

However, on the global point of view, last year was not so good for Apple as for the first time in 15 years, the company saw a decline in sales target and its faulty iPhones were imported from all parts of the world after halted by the commerce ministry.

According to some senior Indian executives who are related to the meeting, the iPhones that would be manufactured under ‘Make In India’ scheme, will only be available to the local markets, while the exporting of them to outside countries will be prohibited.

As of now, the Indian government is offering endorsement through the manner of benefits under the ‘Modified Special Incentive Package Scheme (MSIPS)’, in order to boost electronic manufacturing. The scheme is intended for accommodating the financial incentives of the manufacturing companies to counterbalance the disability and draw higher investments in the electronics hardware industry. Moreover, the scheme also is giving the financial support for investments in special economic zones.

About the author

Rishabh Rajvanshi

Rishabh, with six years of experience in the newspaper industry, has co-founded The TeCake in 2013. Apart from writing and editing articles on Technology at The TeCake, he also contributes to other esteemed newspapers.

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