The US tech giant is planning to setup a manufacturing unit in Bengaluru.
The government of India is finally considering Apple’s request for tax and duty concession following the US giant’s move to set up an iPhone manufacturing unit in Bengaluru.
Apple has been in talks with the government of India regarding tax concession for some time, and the finance ministry had earlier rejected the plea stating that it cannot give special consideration to the company.
Now after the inter-ministry talks held last week with the senior executives of the company, it appears such a concession is likely.
According to sources, Apple has requested the government for the concession to bring its supply chain or component makers to India, which the company says cannot be sourced locally.
Apple has also asked for a duty exemption on products bought from Special Economic Zones (SEZ). As of now, goods exported from SEZs are not subjected to duty and instead import duties are levied on products sold in domestic market.
Apple to set up iPhone manufacturing unit in Bengaluru (February 3, 2017)
The Indian government is considering Apple’s request as many other domestic firms have approached it with a similar request. But there are also reports that some of the exemptions requested by Apple cannot be accepted, as India is slowly establishing itself as a manufacturing hub for smartphones.
Even without any concession or sop offered to domestic or foreign companies, India has established a strong supply chain and giving Apple an undue advantage could mean weakening a budding supply chain and it is important to maintain a balance, some experts say.
Apple has also sought an additional relaxation on consumables for smartphone manufacturing and service or repair for 15 years.
Karnataka IT Minister Priyank Kharge had announced on Twitter in January that Apple Inc. will start a manufacturing unit in Bengaluru in April.