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Apple seeks incentives to set up manufacturing facility in India

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Many smartphone makers have started manufacturing their devices in India, thanks to strong demand and the Make In India program. Now Cupertino tech behemoth Apple is also gearing up to join the league. However, the company has put forth conditions and is looking to get incentives from the government.

As per the reports, in a communication with the government, Apple has asked for incentives related to the department of revenue and department of electronics & information technology (DeITY). Commenting on this, an official said:

They are doing their due diligence from quite some time. The Department of Industrial Policy and Promotion (DIPP) will write to both the departments regarding this communication for their views.

Under government of India’s “Make In India” initiative, companies such as Huwaei, Xiaomi, Vivo, Lenovo, Oppo, LG, Panasonic, Micromax, etc. have started manufacturing their devices in India. As per a report from CyberMedia Research (CMR), the phones that are manufactured under “Make In India” have contributed to around 67 percent of the total sales.

Currently, the government is providing benefits under Modified Special Incentive Package Scheme (MSIPS) in order to boost electronic manufacturing in the country. It provides financial incentives to offset disability and attract investments in the electronics hardware segment.

Apple had earlier requested government to relax the 30 percent domestic sourcing condition for the company, as it was planning to open its brand store in India. It was requested on the grounds that the company provides state-of-the-art technology. However, the request, which was accepted by the panel appointed by the govt., was later on denied by the finance ministry.

With the recently reformed Foreign Direct Investment (FDI) policy, the company has now finally open its single brand store in India and got waiver for three years, which can be extended further.

While the company has wholly owned stores in countries like China, Germany, the US, the UK and France, Apple has no wholly owned stores in India. It had previously partnered with Redington and Ingram Micro to sell its products in the country.

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