Govt seeks details of proposed manufacturing facility from Apple in India

The government has sought investment and job creation details from iPhone maker Apple in order to facilitate setting up its proposed manufacturing facility in India.

A view on Apple's application for tax concessions would be taken up after considering the levels of investments and the benefits that are likely to accrue to the Indian economy, sources said.

Departments including revenue, electronics and information technology, and industry are deliberating upon the Cupertino-based technology major's proposal to set up smartphone manufacturing facility in India.

Earlier, Apple Inc had indicated to the government that it is ready with a blueprint to begin manufacturing iPhones in India, but wants fiscal concessions, including customs duty exemptions, duty waiver on import of components, permission to repair and re-export smartphones and continuation of certain tax incentives after implementation of goods and services tax (GST).

Sources added the government is actively considering their proposal.

With sales tapering off in the US and China, Apple is eyeing India — the fastest growing smartphone market in the world — and looking to set up a local manufacturing unit to cut costs.

Apple, however, does not manufacture devices on its own but gets the job done through contract manufacturers. Besides exemption from the Customs duty on imports of components and equipment for 15 years, Apple has sought relaxation in the mandated 30 per cent local sourcing of components.

Apple sells its products through company-owned retail stores in countries like China, Germany, the US, the UK and France, among others.

It has no wholly-owned store in India and sells its products through distributors such as Redington and Ingram Micro.