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Govt not in favour of concessions to Apple for setting up manufacturing unit

The government is unlikely to grant any concession to tech giant Apple which has sought incentives for setting up an iPhone manufacturing unit in India, government sources said today.
Apple, iPhone, manufacturing unit, Commerce min
India TV Business Desk New Delhi January 03, 2017 19:12 IST

The government is unlikely to grant any concession to tech giant Apple which has sought incentives for setting up an iPhone manufacturing unit in India, government sources said today. 

According to a PTI report citing top government sources, the Commerce ministry was not in favour of concessions to Apple. The company had sought exemptions on the ground that it makes state-of-the-art and cutting-edge technology products for which local sourcing is not possible. 

No other company is asking for concessions to set up mobile manufacturing unit in the country, the sources added.

In a communication to the government, the Cupertino-based technology major has asked for incentives related to the Department of Revenue and Department of Electronics and Information Technology (DeITY).

At present, to boost electronic manufacturing in the country, the government provides benefits under Modified Special Incentive Package Scheme (MSIPS). 

The scheme provides financial incentives to offset disability and attract investments in the electronics hardware segment. It also gives subsidy for investments in Special Economic Zones, among other benefits. 

Currently, Apple's products are manufactured in six countries including Korea, Japan and the US. 

Apple's communication regarding setting up of a manufacturing unit was significance as the Finance Ministry in May had rejected relaxing the 30 per cent domestic sourcing norms, as sought by the iPhone and iPad maker as a pre-condition for bringing in FDI to set up single-brand retail stores in the country. 

The government had also turned down the firm's proposal to import refurbished phones and sell them in India.  

Related Tags: AppleIphone
 

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