Apple intends to set up manufacturing shop in India to produce iPhones for a start, but while there are incentives being offered by the Indian government, the iPhone manufacturer is seeking more incentives, but the government won’t budget, reports in the local media indicate.

Indian Government has been inviting major companies across the world to set up manufacturing plants in India to produce goods in India and then sell it locally or export it across the globe. For this it is formulated Make-in-India initiative under which it is offering a range of incentives to companies including a number of duty and tax concessions, but Apple wants more.

Reports indicate that Apple has demanded more incentives from department of industrial production and promotion, department of revenue and department of information and technology and that too far greater than what the government is offering under its Make-in-India policy. According to a top government official in the country Apple has asked for a number of incentives for setting up a manufacturing plant in India, but the government is unlikely to make any exception for one company.

Under the Make-in-India policy, companies who set up shop in India are already being offered a lot of concessions in the form of tax holidays and government assistance. However, Apple is demanding incentives above and beyond those that are already being offered under Make-in-India and that’s something that the government isn’t intending to provide.

According to the top official, government isn’t going to make a change in its policies and offer more incentives to a company as it will defeat the whole purpose of an integrated policy such as Make-in-India.

Apple is set to gain a whole lot if it opens up manufacturing in India as it will enable the iPhone maker to open up retail stores in the country and expand its market share.

Apple has said that it is asking for incentives because there aren’t many high-end phone-component makers in India from which it will be able to source the components needed for manufacturing its devices as per international standards. While there are quite a few incentives that are being offered including differential duty structure, modified special incentive package scheme (MSIPS) and zero-duty on import of all components except adapters, batteries and headsets, for global and local manufacturers, under Make in India, Apple isn’t impressed and wants more.


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Lawrence John is a senior editor at TopExaminer. He has worked in the retail industry for more than 8 years. He loves to write detailed product reviews.

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