Apple may be granted some of the concessions it has sought in India as a condition for manufacturing iPhones locally.
The country’s government has indicated that it could make some of Apple’s requested tax and policy amendments, which would allow the manufacturer to speed up production at its Bengaluru-based facility and thereby meet the local content quota required for it to open Apple retail outlets in India.
Currently, the US-based firm can only sell its devices in India via authorised resellers. Typically, India demands that companies produce at least 30% of the products sold branded stores locally. Apple has made efforts to comply with these requirements, having begun local manufacture of iPhones in May. Its facility currently produces between 25,000 and 50,000 units monthly.
For almost a year prior to beginning Indian production of iPhones, Apple had been seeking several tax incentives, but in March was denied these requests by India’s Department of Revenue. However, at the time of this rejection, the government did note that it would review its policies on manufacturing to encourage foreign investment and strengthen its Make in India initiative.
Apple has also requested the Indian government to provide tax breaks to its suppliers on the grounds that this would allow the country to become a major hub of manufacturing for smartphone parts.
The Indian government recently allowed Chinese smartphone manufacturer Oppo to launch branded retail stores in the country, indicating that other foreign device vendors could be granted similar approvals.
