Made in India Initiative Gets Major Setback-iPhone Manufacturing

Made in India Initiative Gets Major Setback-iPhone Manufacturing. Indian officials have disapproved Apple’s request for special concession in order to assemble iPhones in India. Right now the government is looking over to it’s overall policy to motivate Apple’s “Made In India initiative” to attract foreign investors.

The US based tech company sent a letter to government last month jotting down its ideas and asking for some financial incentives. The reason behind this letter was to enforce production in India. Senior Ministry officials had a meeting to discuss this initiative of Apple related to manufacturing its products in India.

Made in India Initiative Gets Major Setback-iPhone Manufacturing

This issue of local production of iPhones was brought up by Indian Prime Minister Narendra Modi during a meeting with CEO Tim Cook in May. The biggest smartphone firm asked for many concessions which includes 15 years wavier of customs duties on imported components of iPhone,new and second hand equipment.

Apple’s request is reviewed by officials of three government departments-revenue,industry and IT. According to the officials India’s import duties are high, which influence the competitiveness of companies looking to export.

Information Technology Minister Ravi Shankar Prasad said that India has planned to remain open mind at negotiations with Apple’s executives. However he believed that government should make policies for whole industry, not for a single company.

In June 2016, government changes decision not to make it easier for local sourcing rules for Apple and grant them with three year wavier. It is clear that government is trying to open paths for Apple stores in India. The reversal is part of a major reform package of the country’s foreign direct investment policies announced by the head of the country’s central bank.

Actually the the reason behind the review of policy is to benefit all handsets manufacturers. This may be beneficial for Apple too, meeting it’s demands.

Also Read: Apple Wants India to Offer Tax Concessions to Start Manufacturing in India