Apple Executives to Visit India to Discuss Local Manufacturing Plans

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Apple executives will attend a high-profile meeting with Indian officials later this month in order to discuss the company's plans to set up a manufacturing plant in the country.

Apple is said to be seeking a number of tax and other incentives at the meeting, set to take place on January 25, and could potentially ask for long-term duty exemptions. According to PTI, Indian representatives from a number of government departments will attend, including officials from commerce, industrial policy and promotion (DIPP), revenue, environment and forest, electronics, and IT.

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Last month it emerged that Apple was in talks with India to explore the possibility of making products locally, as well as set up a distribution center, after Prime Minister Narendra Modi ordered his government to exempt foreign retailers for three years from a requirement to locally source 30 percent of goods solid in their stores.

Apple sent a letter to India's federal government in December, outlining its manufacturing plans and asking for financial incentives, and this month's meeting would appear to be the next step in the negotiations.

In September 2015, Apple CEO Tim Cook sat down with Prime Minister Modi to discuss various matters and Cook reportedly responded positively to Modi's invitation to open a manufacturing base in India. Foxconn was previously reported to be looking at the possibility of an expansion into India to produce iPhones and iPads, but Cook's outspoken interest in the possibility was Apple's first public interest in the expansion.

Apple products are currently manufactured in six countries, including China, Korea, Japan, and the United States.

Tag: India

Top Rated Comments

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49 months ago

BS, should be trying to manufacture in the USA. Not India of all places. Thanks for supporting the American Economy, Apple.

Apple has never manufactured phones in the US. I know that they are looking to see if Foxcom can set up a plant in the US, but that will likely be a fairly automated plant, so not many jobs. And because of the laws in India, Apple has to do this if they want to sell in that country. In other words, making phones in the US does not help Apple in India, only making them there help there. So not sure why you are going all Trump here.
Score: 10 Votes (Like | Disagree)
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49 months ago
To manufacture you first need a product, Tim. A product!
Score: 4 Votes (Like | Disagree)
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49 months ago

1: This is not only for iPhones
2: India is not a Major sales country for them
3: It's about investing more into another country that isn't even a big part of your consumer base.

1. Doesn't matter.
2. Duh. That's why Apple is investing in accommodating the laws there to break into that market.
3. Last I heard, sensible businesses try to grow into NEW markets.
Score: 4 Votes (Like | Disagree)
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49 months ago
BS, should be trying to manufacture in the USA. Not India of all places. Thanks for supporting the American Economy, Apple.
Score: 4 Votes (Like | Disagree)
Avatar
49 months ago

1: This is not only for iPhones
2: India is not a Major sales country for them
3: It's about investing more into another country that isn't even a big part of your consumer base.

As far as I understand, by building Apple products in India, they'll be able to offer their products cheaper. Less import taxes for Apple, which would be passed on to customers, while maintaining a profit.

If the after taxed product costs lesser, more people would buy them over Samsung or other similar priced products. India is still one of the few growing markets for Apple.

Once they grow, then they'll be a "major sales country for them".

What I don't understand based on your third point is that, just cause the country is not a big part of their consumer base at the moment, they should just never invest in them?

I disagree, they're investing over there to grow in the future after all.
I'm certain it's a long game for Apple.
Score: 4 Votes (Like | Disagree)
Avatar
49 months ago
Well, a better place than communist China.
Score: 3 Votes (Like | Disagree)

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