Ministry of Electronics and IT optimistic about Apple's production plan
NEW DELHI: The Ministry of Electronics and IT (MeitY) is optimistic that the iPhone maker Apple would soon be able to start local production through its contract manufacturer and take advantage of India's readily available skilled workforce.
"We are supportive of Apple's proposal (to manufacture in India)," MeitY additional secretary Ajay Kumar told ET, though a final decision is yet to be taken on the issue. Beyond devices, Apple's mobile payment service also ties in well with India's move gradually shifting to a less cash economy, he added.
On January 25, a six-member Apple team led by its vice president for operations Priya Balasubramaniam and government affairs head Ali Khanafer, met central government officials including the Department of Industrial Policy & Promotion (DIPP) to discuss the concessions Apple sought. The Tim Cook-headed company has sought fiscal concessions, including customs duty waiver on the import of components required for local manufacturing.
"This is not uncommon when companies ask for certain incentives to start production," Kumar said.
A major hurdle is with Apple's demand seeking a 15-year exemption on countervailing duty (CVD) on imported components, a demand India may find difficult to accept under the soon to be rolled out goods and services tax (GST).
"We are supportive of Apple's proposal (to manufacture in India)," MeitY additional secretary Ajay Kumar told ET, though a final decision is yet to be taken on the issue. Beyond devices, Apple's mobile payment service also ties in well with India's move gradually shifting to a less cash economy, he added.
On January 25, a six-member Apple team led by its vice president for operations Priya Balasubramaniam and government affairs head Ali Khanafer, met central government officials including the Department of Industrial Policy & Promotion (DIPP) to discuss the concessions Apple sought. The Tim Cook-headed company has sought fiscal concessions, including customs duty waiver on the import of components required for local manufacturing.
"This is not uncommon when companies ask for certain incentives to start production," Kumar said.
A major hurdle is with Apple's demand seeking a 15-year exemption on countervailing duty (CVD) on imported components, a demand India may find difficult to accept under the soon to be rolled out goods and services tax (GST).
