Worlds leading iPhone maker Apple may finally set up manufacturing facility in India, with the government apparently agreeing to consider its request for incentives.
Information technology minister Ravi Shankar Prasad said on Wednesday that India would consider Apple's request for incentives to invest in the country with an "open mind", signaling a change in government’s stance over the issue. "We will very much like Apple to come and have a base in India," Prasad told reporters in New Delhi.
As a precondition to investing in India, the US-based company has sought reduction in import and manufacturing duties and insisted that sops should continue even after the country shifts to Goods and Services Tax (GST) whose roll-out is scheduled from July 1.
Apple has offered to manufacture iPhones in the country both for the domestic market as well as overseas markets under the "Make in India" programme, which is aimed at creating jobs for the country’s expanding workforce.
"We want to make India a big hub of electronic manufacturing," Prasad said.
Sources said the government won’t give tax sops exclusively to Apple but it would, nevertheless, accommodate US manufacturer’s demands by tweaking the existing policy as part of its strategy to attract investment under ‘Make in India’ campaign.
This is apparently meant to keep the playing field level between Apple and other foreign iPhone makers setting up shops here. Prasad also said a panel headed by cabinet secretary PK Sinha would now clear investment proposals in the electronic sector above $1 billion, obviating the need for them to through multiple government departments. Apple is keen to launch operations in India, the world’s fastest growing phone market, as growth slows in countries like China.
Apple, which has been left behind by rivals selling cheaper handsets in India, would be able to cut its costs and price products aggressively to match competition if it finally starts production of devices here, say analysts.
However, Apple has not been able to make a breakthrough in its India plan so far. Its application to open stores was rejected by the government earlier as it was found violating a key condition that requires local sourcing of 30 per cent components. The company currently makes most of its products in China.
Information technology minister Ravi Shankar Prasad said on Wednesday that India would consider Apple's request for incentives to invest in the country with an "open mind", signaling a change in government’s stance over the issue. "We will very much like Apple to come and have a base in India," Prasad told reporters in New Delhi.
As a precondition to investing in India, the US-based company has sought reduction in import and manufacturing duties and insisted that sops should continue even after the country shifts to Goods and Services Tax (GST) whose roll-out is scheduled from July 1.
Apple has offered to manufacture iPhones in the country both for the domestic market as well as overseas markets under the "Make in India" programme, which is aimed at creating jobs for the country’s expanding workforce.
"We want to make India a big hub of electronic manufacturing," Prasad said.
Sources said the government won’t give tax sops exclusively to Apple but it would, nevertheless, accommodate US manufacturer’s demands by tweaking the existing policy as part of its strategy to attract investment under ‘Make in India’ campaign.
This is apparently meant to keep the playing field level between Apple and other foreign iPhone makers setting up shops here. Prasad also said a panel headed by cabinet secretary PK Sinha would now clear investment proposals in the electronic sector above $1 billion, obviating the need for them to through multiple government departments. Apple is keen to launch operations in India, the world’s fastest growing phone market, as growth slows in countries like China.
Apple, which has been left behind by rivals selling cheaper handsets in India, would be able to cut its costs and price products aggressively to match competition if it finally starts production of devices here, say analysts.
However, Apple has not been able to make a breakthrough in its India plan so far. Its application to open stores was rejected by the government earlier as it was found violating a key condition that requires local sourcing of 30 per cent components. The company currently makes most of its products in China.
