Apple was earlier reported to have agreed to manufacture iPhones in India on the condition that the tech giant receives a lot of concessions in the form of tax breaks and other cost-saving deals. However, it looks like the Indian government should not be taken lightly as they have refused most of those demands.
Apple Seeking Concessions on a Wide Range of Things – Government of India Refusing to Accept Most of Them
When a foreign company decides to set up a manufacturing plant in a different country, there are several breaks that it wants to receive from the government as a result of the perks the country will be given in the form of cheaper goods and more employment. For Apple, according to Asian Age, those demands were high in number, and just to give you an idea of what the tech giant was demanding from the Indian government, the list is below.
- Duty exemption on manufacturing and repair units for a period of 15 years
- Duty exemption on components, capital equipment and consumables for a period of 15 years
- Duty exemption on smartphone manufacturing and service for a period of 15 years
- Relaxation on 30 percent local sourcing of components
- Reduction of total custom duties
These demands are definitely a mouthful, but it looks like India was not going to bow down to the iPhone manufacturer and refused most of these demands. Details as to which demands were refused have not been stated, and neither was it mentioned if this will create a rift between Apple and the Indian government. We earlier reported that the first phone to be manufactured in India would be an iPhone SE, followed by the iPhone 6 and iPhone 6s.
One of the reasons why Apple was thinking to start manufacturing iPhones in India was to tap into the large smartphone market that is currently being dominated by Xiaomi. The large population of the country will be advantageous for generating a healthy amount of revenue and because goods produced locally will be sold at a lower price tag to interested customers, they would be more inclined to purchase them.
Do you think India was right to refuse some of the demands made by Apple to start manufacturing iPhones there? Let us know in the comments right away.