The Indian government has decided not to offer special concessions to Apple as part of negotiations as the company looks to build its first manufacturing plants in the country.

According a report in the India Economic Times, New Delhi will instead review its entire policy on mobile manufacturing as part of a wider effort to promote its 'Make in India' initiative. This could meet some of the demands that Apple has made as well as benefit other phone makers, said officials.

indian_flag

India needs to support an iconic brand like Apple for the success of the Make in India campaign, officials said. "Our import duty is high," one of them said. "As long as they are getting into exports, our objective should be to give them lowest duty so as to ensure that their product is competitive. Hence we may even relook at the policy as a whole." Another official said no decision had been taken but that concessions cannot be given to just one company. "Normally, similar dispensation has to be given to others similarly placed," he said.

The issue will be looked at in detail at a high-level meeting between Apple executives and state officials set to take place next week. According to Wednesday's report, representatives from revenue, industry, and IT government departments will consider Apple's requests, which include a 15-year customs duty holiday on the import of iPhone kits, new and used capital equipment, and consumables.

Last year, Apple requested permission to set up its own retail outlets in India without being subject to the state's compulsory 30 percent local sourcing rule, claiming it was bringing cutting edge technology to the country. The ministry of finance denied the request as it did not consider Apple's products to fall into the cutting edge category.

According to officials, India's rationale for looking anew at its own trade policy is that it must follow the same set of principles prevalent elsewhere which have helped businesses become global manufacturers. India is already home to a crowded mobile phones market, with Chinese firms Huawei and Xiaomi among some 42 competing handset makers. Apart from Apple, no other company has approached the government for any incentives, people with knowledge of the matter said.

Update: India will consider Apple's request for incentives to invest in the country with an "open mind", IT minister Ravi Shankar Prasad has told Reuters this morning. "We will very much like Apple to come and have a base in India," Prasad said.

Tag: India

Top Rated Comments

d5aqoëp Avatar
97 months ago
Excellent. The first Indian government to show some spine and not bending before a large corporation.
Score: 10 Votes (Like | Disagree)
HappyDude20 Avatar
97 months ago
Excellent. The first Indian government to show some spine and not bending before a large corporation.
Yes I agree.

Very smart of india to proceed with caution and look after its citizens long term as oppose to making a quick buck.
Score: 6 Votes (Like | Disagree)
Aluminum213 Avatar
97 months ago
Good for India for not bending over backwards for Apple


Now imagine if America demanded iPhones and iPads were made in America
Score: 5 Votes (Like | Disagree)
FriednTested Avatar
97 months ago
Yes I agree.

Very smart of india to proceed with caution and look after its citizens long term as oppose to making a quick buck.
Lol. These ****ing illiterate jokers who have formed the current government won't do ****. I'd rather not get into the nitty gritties of the political/government joke we are suffering at the moment on an Apple forum. :p

Trust me when I say that the citizens welfare is the last subject on their mind. For reference do read about the demonetisation blunder. Where the government withdrew 87% of the legal currency without having even 10% of the replacement ready. Which cost over a 100 lives and brought the economy to a halt.
[doublepost=1484756193][/doublepost]
A friend travels to India very often, and the photos she brings back reflect all the misery most of their citizens experiment.
Not everyone there has the privilege of being rich or belonging to a higher caste.
The reality is very sad. These are the people who could benefit from an Apple manufacturing plant.
True, they may not make much money, but at least some money is better than no money.
You are correct. But, alas the current government is extreme right wing and they are increasing the wealth divide along with the caste divide.
Score: 4 Votes (Like | Disagree)
rohanparekh Avatar
97 months ago
Lol. These ****ing illiterate jokers who have formed the current government won't do ****. I'd rather not get into the nitty gritties of the political/government joke we are suffering at the moment on an Apple forum. :p

Trust me when I say that the citizens welfare is the last subject on their mind. For reference do read about the demonetisation blunder. Where the government withdrew 87% of the legal currency without having even 10% of the replacement ready. Which cost over a 100 lives and brought the economy to a halt.
[doublepost=1484756193][/doublepost]

You are correct. But, alas the current government is extreme right wing and they are increasing the wealth divide along with the caste divide.
If you really want to talk about current Indian politics schemes and specially on demonetization move, I think you should do more homework. Removing 87% of legal currency in overnight and not having 10% of the replacement ready was an intentional move. Ask yourself, you think government of India is that fool to understand this economy situation? You think current officials are bunch of jokers sitting in parliament and decided to do demonetization move for fun? Do you know the purpose of demonetization operation? 100 lives are gone is not directly connected to demonetization move...but thousands of corrupt people, millions of black money amount and properties has been caught in 50 days(and still counting, which is expected to recover black money in billiions of dollars) are direct related to demonetization.
Score: 4 Votes (Like | Disagree)
jaymie1983 Avatar
97 months ago
Apple might be able to exploit some parts of the world, the Indians are wise to hold their ground
Score: 4 Votes (Like | Disagree)

Popular Stories

Apple Intelligence General Feature

Apple Intelligence Features Not Coming to European Union at Launch Due to DMA

Friday June 21, 2024 9:44 am PDT by
Apple today said that European customers will not get access to the Apple Intelligence, iPhone Mirroring, and SharePlay Screen Sharing features that are coming to the iPhone, iPad, and Mac this September due to regulatory issues related to the Digital Markets Act. In a statement to Financial Times, Apple said that there will be a delay as it works to figure out how to make the new...
iOS 18 on iPhone Feature

Everything New in iOS 18 Beta 2

Monday June 24, 2024 12:52 pm PDT by
Apple today released the second betas of iOS 18 and iPadOS 18 to developers, and the software adds support for new features that Apple is working on, plus it tweaks some of the interface changes that have been made in the updates. Apple will refine iOS 18 over the course of the next few months, with multiple changes and refinements expected from now until September. We've highlighted...
Apple WWDC24 Apple Intelligence hero 240610

Apple Explains iPhone 15 Pro Requirement for Apple Intelligence

Wednesday June 19, 2024 4:48 am PDT by
With iOS 18, iPadOS 18, and macOS Sequoia, Apple is introducing a new personalized AI experience called Apple Intelligence that uses on-device, generative large-language models to enhance the user experience across iPhone, iPad, and Mac. These new AI features require Apple's latest iPhone 15 Pro and iPhone 15 Pro Max models to work, while only Macs and iPads with M1 or later chips will...
amazon echo dot

Amazon Could Charge Up to $10/Month for Alexa

Friday June 21, 2024 2:55 pm PDT by
Apple competitor Amazon is working on a revamp of its Alexa assistant, and the new version could cost up to $10 per month, according to a report from Reuters. The upcoming version of Alexa will support conversational generative AI, and Amazon is planning for two tiers of service. There will be a free tier and a second, premium tier that is priced at $5 at a minimum, with Amazon considering...
top stories 22jun2024

Top Stories: Apple Watch X Rumors, New Final Cut App for iPhone, and More

Saturday June 22, 2024 6:00 am PDT by
The avalanche of news coming out of WWDC earlier this month is finally starting to slow, but that doesn't mean there wasn't still lots to talk about in Apple news and rumors this week. This week saw some additional rumors about the upcoming Apple Watch models, the release of major Final Cut Pro updates, the launch of Apple's annual Back to School promo in the U.S. and Canada, new...