Suresh Prabhu to meet Apple leadership in Davos over India manufacturing plans

When asked about tax and other concessions being demanded by the company, the minister said: “We can look into that”. The tax and other concessions demanded by them can be negotiated, he said, adding it is a good time for Apple to come to India, “we will be very happy to receive them”. The Cupertino-based iPhone and iPad manufacturer has asked for certain concessions for setting up its manufacturing unit in the country.

It had sought duty exemption on manufacturing and repair units, components, capital equipment and consumables for smartphone manufacturing and service/repair for a period of 15 years. The company also wanted relaxation in the mandated 30 per cent local sourcing of components, besides reduction in customs duties on completely-knocked-down and semi-knocked- down units of devices that are to be assembled in the country.

Apple does not manufacture devices on its own but gets the job done through contract manufacturers. It 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 products through distributors such as Redington and Ingram Micro.