It seems that Apple and Government of India are finally on the same page as the latter is considering tax exemptions sought by former for setting up a manufacturing unit to assemble iPhones in India. The announcement comes after the government approved Oppo to set up its own single-branded retail stores in the country.
According to a report by Reuters, Ramesh Abhishek, the top bureaucrat in the Department of Industrial Policy and Promotion, said that the government is considering Cupertino giant’s requests on certain tax breaks. This could also mean that the government might allow Apple to open its single-branded retail stores in the country soon as well.
Apple has asked for various concessions including a 15-year custom holiday on iPhone kits imports and other tax incentives to enter the manufacturing sector in India. The company is already reported to have selected the first Indian-based supplier for this year iPhones in India. Wistron is reported to be the primary supplier in India for manufacturing of new iPhones. The report further adds that Foxconn and other makers will act as secondary OEMs only if demand increases.
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Earlier, the company sought permission to open fully-owned retail stores in India after the change in FDI rules. To recall, the government toned down its FDI rules back in June previous year and allowed 100% FDI in single-brand retail trading in the country. The government gave a three-year exemption from local sourcing with an extension of up to five years if it’s proven that the products of ‘state-of-the-art’ and ‘cutting-edge’ technology. The company has asked for an exemption from the local sourcing as it is bringing ‘cutting-edge’ technology to the country, which was turned down by the finance ministry.