Apple in Talks with Indian Government to Manufacture Devices in India

On Tuesday, The Wall Street Journal reported that Apple is considering to manufacture its devices in India. It is in talks with Indian government to start making products locally. The US tech giant intends to surge its market position in the world’s third-leading smartphone market.

This isn’t the company’s first proposal. Earlier this month, The Press of India stated that Apple entreated inducements in a letter to India’s Department of Revenue and Department of Electronics and Information technology (DeITY). It specifically pursued tax exceptions.

Apple In Talks with Indian Government to Manufacture Devices in India

According to The Wall Street Journal, Senior Trade Ministry authorities have met to deliberate Apple’s proposal. CEO Tim Cook also discussed the matter with Prime Minister Narendra Modi when the two met in New Delhi.

Apple’s request comes immediately after two refusals. The Indian government previously disapproved Apple’s request to import renewed phones and sell them in India. And it also rejected to permit the company to open Apple Stores, citing strict regulations on foreign direct investment.

But now the whole scenario has changed. As in June, the government declared that certain brand retailers, especially those who have decided to acquire as a minimum 30 percent of their raw resources from Indian dealers for a minimum of three years will be allowed to open brick-and-mortar outlets in the country.

Also Read: Apple to Set up its First Offshore Technology Development Facility in India

Transferring the manufacture of smartphones, tablets, and other devices in India could help the company meet that requirement. Contrary to opponents like Samsung and Xiaomi, which are assembling products in India, Apple manufactures most of its smartphones in China, South Korea, Japan, and the U.S.

This step could cut the cost of the iPhone in a country where its selling price is constantly among the highest in the world. A wearying rupee, barriers against currency increase, and a surge in taxes on imported goods herd the iPhone’s going rate to record elevations previous year.

A senior analyst at market research agency Counterpoint, Tarun Pathak informed BuzzFeed that iPhone prices in the country could fall 12-13% if Apple manufactured its devices in India.