The possibilities of Apple’s manufacturing plant in India has again been brought into question. Apple had previously shown interest in assembling iPhones in India and the government had shown a lot of interest as well. However, in the latest development it appears that some Indian officials are unwilling to compromise with Apple over its long list of demands.
India is strongly willing to convince the tech behemoth to produce its signature smartphones here, and the Information Technology Minister Ravi Shankar Prasad stated as much on Wednesday when he said that that India would consider the negotiations with an “open mind.”
We will very much like Apple to come and have a base in India.
However, the company has a very long list of demands which include tax concessions and a variety of policy expectations, which many Indian officials have declined to accept pronouncing it an injustice to the foreign companies which are already operating in India.
Their attention highlights Prime Minister Modi’s intent of making India a global manufacturing hub, in order to drive the economy and create job opportunities to curb unemployment, which is one of the biggest problems in the country.
An anonymous government official involved in evaluation of Apple’s proposal said;
We have not done this for anyone. If we do this, we must see a lot of value addition.
Another official involved in the review advised that the government should make policies for the industry, not individual companies.
Apple is coming here because it sees a lucrative market, this is not a favor being done to India.
Currently, the company holds only 2% share in the Indian smartphone market. The biggest reason for this is because it is expensive due to its high import tax. A production base in India will not only help Apple with a better market, but will also create an euphoria among the Apple lovers.
Meanwhile, the Cupertino giant’s toughest competitors like Samsung and Xiaomi have already set up their manufacturing bases in India.
