A new report claims that the Indian government is considering accepting some of Apple’s demand for manufacturing iPhones in the country if the Cupertino company promises to make a huge investment and create lakhs of jobs.
The government is eager to see what Apple is able to bring to the table if given a go-ahead in setting up an iPhone manufacturing unit in the country. Apple had asked for relaxed labelling rules, lower tax rates, and financial incentives from the Indian government for setting up an iPhone manufacturing plant in the country.
The official said that the Indian government is looking into Apple’s proposal and what the company can bring to the table without disrupting the already 40 mobile manufacturing units that have come up in the country.
“Their factory in China gives jobs to 10 lakh people. If they say they will put five factories in India and give employment to 10 lakh people or say we will give you Rs 5,000 crore of excise duty, we may think about it (Apple’s demands),” the official said.
A previous report suggested that Apple is “very serious” about setting up and starting assembly operations and eventually manufacturing iPhones in India by the end of 2017. The company only plans on assembling and manufacturing iPhones in Bengaluru that will be sold in India itself, with no plans of exporting them to other regions. It will also not make use of any locally sourced components for assembly and manufacturing process. By manufacturing and assembling locally, Apple is looking to avoid the 12.5% duty that it has to pay right now for importing iPhones and selling them in India.
Apple has multiple assembly plants for the iPhones outside of China, though it continues to source the components used inside the handsets from its suppliers in China.[Via ET Tech]