Tech Telecom

Apple has sought incentives from the government to set up a manufacturing unit in the country. In a communication to the government, the company has asked for incentives related to the Department of Revenue and Department of Electronics and Information Technology (DeITY), an official told .

“They are doing their due diligence from quite some time. The Department of Industrial Policy and Promotion (DIPP) will write to both the departments regarding this communication for their views,” the official added.

Under Modified Special Incentive Package Scheme (MSIPS), the government provides benefits to boost electronic manufacturing in the country. To offset disability and attract investments in the electronics hardware segment financial incentives are provided under the scheme. It also provides subsidy for investments in Special Economic Zones, among other benefits.

Apple’s communication regarding setting up of a manufacturing unit assumes significance as the Finance Ministry in May had rejected relaxing the 30 per cent domestic sourcing norms, as sought by the iPhone and iPad maker as a pre-condition for bringing in FDI to set up single-brand retail stores in the country. The company had sought exemption on the ground that it makes state-of-the-art and cutting-edge technology products for which local sourcing is not possible.

The firm’s proposal to import refurbished phones and sell them in India has also been turned down by the government. Incentives to promote electronic manufacturing in India and to reduce the import bill have been announced by the government.

Currently, Apple’s products are manufactured in six countries including Korea, Japan and the US. The company sells its products through Apple-owned retail stores in countries like China, Germany, the US, the UK and France, among others. At present, the company has no wholly-owned store in India and sells its products through distributors such as Redington and Ingram Micro.

Total import of electronics goods was valued at Rs 2.25 lakh crore in 2014-15 as against Rs 1.95 lakh crore in the previous year.