Apple seek tax sops for producing iphone in India

Apple is lobbying the government of India to provide tax breaks for manufacturing the iconic iphones in India. The company seeks lower import and manufacturing duties even after the GST is rolled out. With the global sales of iphone growing marginally, and the growth slows in China, the firm is increasingly looking at India as its future growth driver. India, now also the world’s fastest growing, has been among the top priority market for all the major smartphone makers.

The firm has had a history with India in terms of attempts to manufacture its iphones in the country. Its application to open stores was rejected as it fell foul of local rules that typically require at least 30% of components to be made locally before a foreign company can sell through their own outlets. Apple makes most of its products in China and doesn’t currently meet that criteria.

With the government of India’s push for Make in India, especially in semiconductor and electronics industry, a host of smartphone manufacturers have started production in the country. Major names such as Samsung, Nokia, Micromax, Intex etc have all been manufacturing in the country. While Foxconn Technology Group—Apple’s main manufacturing partner—has expressed plans to assemble phones in the country for brands like China’s Xiaomi Corp., most iPhones are put together in China. The Taiwanese company only began making its first smartphones in India in the middle of 2015.