Apple has requested India to postpone a proposed growth in import duty on mobile phone components so it can extend its iPhone making in the nation. However, the government is doubtful to agree, sources well known with the issue claimed to the media in an interview.
The U.S. tech behemoth has been in discussions with officials of Indian for months, looking for “pre-requisites,” which include government incentives and tax breaks. This is done for extending its processes in one of the fastest-developing smartphone markets in the world. At the time of those discussions, Apple has expressed that it needs India to postpone a current policy that aims to charge duty on more imported handset parts in line with Prime Minister’s “Make in India” mission to drive local manufacturing.
While Government of India has been eager to get Apple to produce in India as a centerpiece investment, it has claimed the U.S. company that there might be no policy exceptions, so there will be no breaks in tax on components imports, the sources claimed. “India needs indigenization. Apple needs duty-free imports of parts,” claimed one source with direct awareness of the discussions to the media in an interview.
Apple has shown readiness to grow domestic value addition eventually, but has stuck to its requirement for instant import tax relief to extend its iPhone making, the source claimed. Apple refused to answer, and there was no reply from either PM’s office or the Ministry of Electronics and Information Technology, which is making an attempt to assist build a base of electronics manufacturing.
The divergence might be a faltering block, and pose a danger by holding up Apple’s strategy to enter the Indian market, where it presently just accumulates its iPhone SE model. In spite of a boom in handset sales in India, market share of Apple is just almost 2%.