From quite some time the tech giant Apple was trying to get approval from the Indian Government to manufacture its devices in India. After many meeting, Government allowed Apple to set its assembly line in India. In June the government asked Apple to detail its long-term investment plans for manufacturing iPhones and job creation in India before it will consider a request for tax concessions. Apple Demanded Indian Government to Put Off Import Taxes on iPhone Components.
Apple has requested Indian government to put off increase in import taxes on mobile phone components. In this way company will be able to expand local production of iPhones.
India Faulty Import Tax Policy Angers Apple
However Narendra Modi, Prime Minister of India revealed plans to impose more taxes on imported components to encourage local production.
According to Counterpoint research, 75 percent of smartphones sold in India in 2016 were made in India but majority were imported. Indian Government has always expressed its plans to impose taxes on more components as a way of pushing parts suppliers to switch to local production.
Reuters revealed that Apple wants duty free imports of components however Indian Government has denied to offer special concession to any company.
If the both parties come to an approval, iPhone maker will be able to expand its business in the market. It should be worth mentioning here that Indian tech market is considered to be the second largest market in the world. So in case Indian Government agreed to Apple demands, the company will be benefited by opening Apple stores in India.
Uptil now it seems both parties will bot be able to reach an agreement soon.