As the US tech giant Apple gears up to assemble iPhones locally, the commerce ministry has said it is not in favour of sops to the company for setting up a manufacturing unit in India.
The iPhone maker had sought tax concessions and waivers in labelling rules for locally manufacturing its globally popular smartphone. Ever since it first hinted at putting up an assembly unit in the country, Apple has been lobbying for relaxation in domestic sourcing norms and other concessions.
It has insisted on being provided sops in return for starting local manufacturing of its product, but the government has so far declined to oblige.
Official sources said there are dozens of mobile manufacturers in the country, who can also demand concessi?ons, should the government yielded to Apple’s demand.
The government will also have to see the quantum of investment, which the mobile-maker makes and the number of jobs they create.
Earlier, Apple had proposed to bring used iPhones and sell it locally, but the government turned it down.
Senior officials on Tuesday told PTI the commerce ministry was not in favour of concessions to Apple for setting up manufacturing unit in India. “No other company is asking for concessions to set up mobile manufacturing unit in the country,” it quoted an unnamed official.
They maintain that India is one of the best places for manufacturing, given the rising demand for smartphones in the coming years. India's smartphone market is set to become the second largest next year after China, overtaking the US.
Thus, officials say there is no need to provide sops. The government has provided benefits under the modified special incentive package scheme to boost electronics production in the country.
It provides incentives to offset disability and attract investment in the electronics hardware segment, apart from subsidising cost in SEZs, among other benefits.
Apple has urged the government to relax the labelling rules so that it does not have to provide product info on its devices. The department of industrial policy and promotion, the nodal government agency to promote foreign fund flow, has forwarded the request to the finance and IT ministries for consideration.
The iPhone maker had sought tax concessions and waivers in labelling rules for locally manufacturing its globally popular smartphone. Ever since it first hinted at putting up an assembly unit in the country, Apple has been lobbying for relaxation in domestic sourcing norms and other concessions.
It has insisted on being provided sops in return for starting local manufacturing of its product, but the government has so far declined to oblige.
Official sources said there are dozens of mobile manufacturers in the country, who can also demand concessi?ons, should the government yielded to Apple’s demand.
The government will also have to see the quantum of investment, which the mobile-maker makes and the number of jobs they create.
Earlier, Apple had proposed to bring used iPhones and sell it locally, but the government turned it down.
Senior officials on Tuesday told PTI the commerce ministry was not in favour of concessions to Apple for setting up manufacturing unit in India. “No other company is asking for concessions to set up mobile manufacturing unit in the country,” it quoted an unnamed official.
They maintain that India is one of the best places for manufacturing, given the rising demand for smartphones in the coming years. India's smartphone market is set to become the second largest next year after China, overtaking the US.
Thus, officials say there is no need to provide sops. The government has provided benefits under the modified special incentive package scheme to boost electronics production in the country.
It provides incentives to offset disability and attract investment in the electronics hardware segment, apart from subsidising cost in SEZs, among other benefits.
Apple has urged the government to relax the labelling rules so that it does not have to provide product info on its devices. The department of industrial policy and promotion, the nodal government agency to promote foreign fund flow, has forwarded the request to the finance and IT ministries for consideration.
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