Apple is facing a lot of issues in order to obtain a market share in India due to high-priced iPhones and other Apple products. The main issue is Apple is not able to set up a manufacturing unit in India. The tech giant is in talks with the Indian government since last few years, however, they haven’t reached on an agreement.
Suresh Prabhu, Commerce and Industry Minister said that he will be meeting top Apple executives in Davos next month. He stated that discussions are already on its way and the government will take a closer look at Apple’s requirement for establishing a manufacturing unit in India.
“We are still talking to Apple. Negotiations are ongoing. If they agree, we will like them to set up offices in India as well. I am meeting Apple’s top leadership in Davos in early January,” the minister told PTI in an interview.
Some of the important things are released in the report. One of the most important thing in India’s approach to concessions. Apple has earlier sought out duty exemption on manufacturing and repair units, components, capital equipment and consumables for smartphone manufacturing and service/repair for a period of 15 years.
Apple wants relaxation on the mandated 30% local sourcing of components and also decrease in custom duties on fully-knocked down and semi-knocked down units of devices which are assembled in the country.
Almost all the demands were dropped by the government last year, however, later that year, he said the center will fully support Apple’s ambition to build a manufacturing unit and was waiting for a proposal. Recently, Prabhu said that situations are changed now and there are a lot of possibilities to reach an agreement.
“When their offer came two-three years back and today, the situation has changed for them as well as for us. So, it is a good time to meet and discuss and finalise,” he added.
The main part of the report is that Apple is searching for new opportunities to set up its own facilities. Currently, Apple production in India is done through third-party firms. Also, it is selling products via third-party stores as there are no apple stores in India.