While Apple is gears up to start making iPhones here in India, the Department of Industrial Promotion and Policy (DIPP) is yet to take a decision on certain duty waivers which Apple has been requesting for quite some time now. For setting up the unit in India, the US-based technology giant Apple has sought certain waivers or norms.
Secretary in the Department of Industrial Policy and Promotion (DIPP) Ramesh Abhishek said that Apple has submitted certain demands for the government’s consideration. He added:
We had a meeting of all the concerned ministries and departments (on those demands) and we have asked them to look at those issues and take a view. No ministry has yet taken a final decision on any of those. But we are in touch with them.
We would definitely like to promote this. So we are coordinating response from all the concerned ministries but no final view has been taken yet on any of those.
He has also clarified that the government does not take policy decision for any particular company. Thus, whatever be the decision, it will be applicable to others as well. The request from Apple has been forwarded to the Department of Revenues also.
Last month, Apple Inc. indicated to the government that it is ready with a blueprint to begin manufacturing iPhones in India. However, the company asked for fiscal concessions, including Customs duty waiver on import of components. Besides that, the company also wants relaxation in the mandated 30 per cent local sourcing of components.[mks_pullquote align=”right” width=”300″ size=”24″ bg_color=”#dd3333″ txt_color=”#ffffff”]Last month, Apple Inc. indicated to the government that it is ready with a blueprint to begin manufacturing iPhones in India.[/mks_pullquote]
The team from Apple made a presentation spelling out their plans in India to senior government officials from DIPP, Ministries of Environment, Electronics and Information Technology and Department of Revenue.
Last week, the Karnataka government issued a statement confirming that Apple India Pvt. Ltd, the Indian arm of Apple Inc. had reached an agreement with the state government to set up a manufacturing plant in the Peenya Industrial Area of Bengaluru.
Currently, the Government of India is providing support by way of benefits under the Modified Special Incentive Package Scheme (MSIPS) in order to boost electronic manufacturing in the country.