3 Reasons Why Apple’s Make in India Plans is Unlikely to be Smooth

Apple has been vying to set up its manufacturing unit in India, which in a way means that Apple devices — iPhones, iPads and probably Macbooks too — will be available at cheaper rates as and when this happens.

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The Indian government also wants the tech titan to set up its manufacturing units in India, as the Make in India campaign is on overdrive, having already tied up with more than a score of mobile companies to start manufacturing in the country.

But there are certain complications that have arisen of the talks between government officials and Apple executives, which might delay the plans of the company to make in India.

Government officials are yet to discuss the demands of Apple and a meeting taking place on January 25, 2017, will decide the fate of the prices of Apple products in the country.

Demands set by Apple

1. Custom Duty Exemption for the next 15 Years

According to a report published on Indian Express, Apple is looking to get long-term custom duty exemptions from the government to the tune of 15 years. The company has sought exemptions on raw materials such as repair inputs and manufacturing units, components, new and used parts of the devices.

In addition to all that, Apple also wants exemptions on consumables that’ll be used in manufacturing the iPhones as well as in their service centres.

2. Apple doesn’t want to follow Labelling Rules

The company has also sought tax exemptions as an incentive for setting up the manufacturing units, as well as doesn’t want to follow the labelling rules laid down by the government which state that a manufacturer has to print certain products information on their devices.

3. Permission to Assemble Used Smartphones Locally

Apple has already received relaxation in the local sourcing laws to roll out its stores in India from the Department of Industrial Policy and Promotion. In addition to this, the company also wants to bring used smartphones to the country and assemble them locally as refurbished units.

It’s still unclear whether or not the government will comply with these demands from Apple and we will only know the end result after the meeting on January 25, which will see officials from IT and Finance ministry, Department of Commerce, Industrial Policy and Promotion and several other ministries review these demands.

H/t: Business Standard

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