The Indian government is going to offer slew of trade and business incentives to start production here.
The Indian government finally easing up trade restrictions and norms to encourage mobile manufacturers to set up base in the country. According to latest ET report this week, the Ministry has decided to waive off a slew of regulations and making brands more active in decision making for the industry. All this is likely to attract giants like Apple to move its production unit from China and finally look to establish its base in India over the coming years.
The report points out various clauses of production machinery valued at 40 percent was a big deterrent for companies to localise their manufacturing. But it looks as if these norms will not pose hurdles for manufacturers very soon. Apple is probably going to be the biggest target for the Indian government since it has the power to gain the attention of companies from other industries.
Even though Apple has been using plants from Wistron and Foxconn to assemble iPhone 7, 8 and even the XR recently, the company would rather look to start production within the country to offset the added import duty costs. This is the main reason for iPhones imported from abroad costing a lot more than its sticker price in India.
It's also said the paperwork and scrutiny of companies done before setting up a business will also be made lenient. Administrative practices, lack of production impetus has forced major companies to work out of China for many years now. But with the ongoing geopolitical unrest among US and China amid the trade war, it's apparent that India wants to gain some points from the scuffle to get its industry and make in India project moving.
Apple has been looking out for various exemptions from the Indian government, some of which have been accepted by the regime. But if these new changes are made official and implemented on the ground, the production landscape in the country could finally move in the right direction.
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