Apple met with the Indian Government on 25th January, and both parties are happy with the talks. We are likely to see positive results viz-a-viz the future of Apple India, especially their manufacturing plans in India.
Background:
- As reported earlier, the meeting was to deliberate on how should Apple proceed (if at all) with its manufacturing plans.
- Apple wanted to avoid local sourcing laws, while the government was not willing to provide an exemption.
- Law states that Apple must source 30% of raw materials. Currently, more than 40 smartphone manufacturers are operational in India; none of them has an exemption.
- Apple had issued a list of demands prior to the meeting.
“We would very much like Apple to come and have a base in India, they have a base in China, and China is under stress. If a structured request come from them, we will surely consider with [an] open mind.”
— Ravi Shankar Prasad, Minister for Comm. & IT.
(Image Source: ET)
The Meeting:
- The meeting revolved around Apple demanding an exemption from local sourcing at least for the first three years, if not indefinitely.
- Apple also asked for a 15-year “holiday” from taxes and import duties on importing equipment components.
- Apple claimed the meeting was “constructive.”
- Two placed sources at the government reportedly said it’s “almost a done deal,” and that the government is willing to “settle with Apple.”
- As of publishing this article, there hasn’t been any official release of details from either party.
“We’ve been working hard to develop our operations in India. We appreciate the constructive and open dialogue we’ve had with [the] government about further expanding our local operations.”
