In yet another twist to the iPhone manufacturing in India saga, the tech-giant and the Indian government have set a new date for their rendezvous.
According to reports, a meeting between Apple and the Indian government has been fixed for 25th Jan 2017. The meeting will likely try and find a solution to the impasse that both of them have reached over the past year.
If you’ve been following Apple news in India, you’ll know that the company has been trying very hard to speed up its iPhone manufacturing plans here. However, the road to setting up a store in India has not been smooth and our government’s strict rules and regulations have been wrecking Apple’s ambitions.
Although it’s been almost a year now since negotiations began, this meeting might finally bring forth some solid decisions. They may or may not be in favour of Apple, but we’re still really optimistic.
What’s the problem Apple is facing?
As per FDI’s rules, a company can have retail stores in the country only if 30 percent of the components used in building the product are locally procured/sourced. Apple believes that India doesn’t have the high-quality raw materials needed to produce their avant-garde technology. And for this reason, they’re seeking an exemption from this law.
Apart from this, Apple has also requested various other exemptions. NDTV said:
“The Cupertino-based technology major has asked for several tax and other incentives, including long-term duty exemptions, to enter the manufacturing sector in India. However, government sources said that the technology major should set up the manufacturing unit in India without seeking any additional support.”
The report points out that of 40+ phone manufacturers operational in our country, none have asked for any additional exemptions or incentives. So, why is Apple asking for preferential treatment?
Exponents of the free market are loud in their opinions that no special treatment should be given to Apple. However, some market pundits do agree that no other manufacturer is creating “cutting-edge technology” in India, and it’s only fair to consider Apple’s request with an open mind.
Essentially, it will come down to whether or not the government considers the technology created by Apple to be so far removed from the others’ as to merit a valid exemption. The meeting that will decide the fate of iPhone manufacturing in India is set for 25th January. All we’ve got to do is wait for a week and find out which way the tide is going to flow.
