Govt To Offer Full Support To Apple To Set-up Manufacturing Facility In India
The Indian Government will support Apple’s ambitions to set up its first manufacturing facility in the country, and is currently awaiting a formal proposal from the Cupertino major on the same, Commerce and Industry Minister Suresh Prabhu was quoted by PTI as saying.
In fact, the Indian Government is willing to call all state chief ministers to the table who are willing to give them the best deal to help Apple bolster PM Modi’s ambitious Make in India campaign.
“Let us get a good proposal from them…We will be very happy to receive Apple, one of the top brands in the world. We are willing to find out if there is any difficulty they may face. We will be more than happy to resolve that difficulty. So we will await a formal proposal,” Prabhu told PTI in an interview.
Apple has asked for certain concessions for setting up manufacturing unit in the country. The government, in turn, has sought investment and job creation details from the iPhone maker to facilitate setting up its proposed manufacturing facility in India.
Apple India had 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.
The company also wants relaxation in the mandated 30 percent local sourcing of components besides reduction in customs duties on completely knocked down and semi knocked down units of devices that are to be assembled in the country.
India requires that all foreign companies must stick with at least 30 per cent of locally sourced components. The clause is well meaning. It is intended to encourage local manufacturing. But the problem is that India lacks a supply chain that can effectively provide these 30 per cent components to companies. Cutting edge products like the iPhone require components that may not available in India’s current supply chain ecosystem and that could be a problem for majors like Apple.
In the meanwhile, Apple has started assembling at least one iPhone model the iPhone SE in India. The company has started assembling the iPhone SE models with its Taiwanese manufacturing partner Wistron Corp in Bengaluru. Wistron’s newly setup plant in Bengaluru will focus solely on assembling iPhones even as the Cupertino major seeks tax concessions from the Indian government to set up local production in the world’s fastest growing major mobile market.