Government has not accepted demands of Apple: Nirmala Sitharaman

Team Udayavani, Mar 23, 2017, 9:24 AM IST

New Delhi: The government said it has not accepted “most of the demands” of iPhone maker Apple Inc. which wants to set up manufacturing unit in India. To a question in Rajya Sabha on whether the government has accepted most of the demands of the iPhone manufacturer, Commerce and Industry Minister Nirmala Sitharaman said, “No”.

Apple India has sought concessions including duty exemption on manufacturing and repair units, components, capital equipment and consumables for smartphone manufacturing and service or repair for a period of 15 years, she said in a written reply.

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

Apple also wants relaxation in the mandated 30 per cent local sourcing of components. It also wants reduction in customs duties on completely-knocked-down and semi-knocked-down units of devices that are to be assembled in the country.

In January, Apple had indicated to the government that it is ready with a blueprint to begin manufacturing iPhones in India, but wants fiscal concessions, including Customs duty waiver on import of components.

Apple executives had made a detailed presentation to an inter-ministerial group headed by Department of Industrial Policy and Promotion Secretary Ramesh Abhishek on its road map.

With sales tapering in the US and China, Apple is eyeing India — the fastest-growing smartphone market in the world — and looking to set up a local manufacturing unit to cut costs.

It, however, does not manufacture devices on its own and does it through contract manufacturers. The company sells its products through Apple-owned retail stores in countries like China, Germany, the US, the UK and France, among others. It has no wholly-owned store in India and sells its products through distributors such as Redington and Ingram Micro.