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Apple won't get easy concessions from government

05 January 2017
Apple won't get easy concessions from government

Apple's India plans have hit a sticking point over concessions the company is making a pitch for.

The commerce and industry ministry is unlikely to recommend special concessions to USA tech giant Apple, over and above those available to other players, for setting up a manufacturing unit in India, official sources said on Tuesday.

The government is unlikely to dole out any special concessions to Apple for manufacturing iPhones in India.

The official cited above said should set up manufacturing units in India without seeking concessions in return.

The Department of Industrial Policy and Promotion (DIPP) has forwarded the iPhonemaker's request to the Department of Revenue and Department of Electronics and Information Technology (DeITY).

In November, the US-based iPhone maker Apple had also sought incentives from the government to set up a manufacturing unit in the country. This year, Apple struggled with the government's regulations on foreign direct investments, but a ruling over the summer time eventually cleared the way for Apple to begin increasing its retail presence inside the U.S. notwithstanding India's very own boom because the 0.33-largest phone marketplace within the global, Apple bought 35 percentage fewer iPhones in India in the course of 2016 than it did in 2015.

Make in India
The Apple CEO Mr. Tim Cook calls on the Prime Minister Shri Narendra Modi in New Delhi

The concessions and new Bangalore-based facility are the most modern steps in Apple's try to bolster its presence in India.

Apple is banking on a relaxation in foreign investments norms for single-brand retailing for companies bringing what it called "state-of-the-art and cutting-edge" technology.

In May this year, Apple announced setting up of a Design and Development Accelerator in Bengaluru to accelerate the growth among India's iOS developer community and to support engineering talents to leverage Apple's programming language Swift and build apps for Apple Watch and Apple TV. India is one of the world's fastest growing economies - the sales of Apple products, sold mainly through third-party retailers in the country, crossed $1 billion in 2015. Ltd, the leader in India's smartphone market, which has a share of 21%.

India is now the best place to establish a manufacturing facility.

None of these smartphone makers have sought government reliefs for manufacturing in India.