When their offer came two-three years back, Apple had demanded certain concessions for setting up its manufacturing unit in the country
Commerce and Industry Minister Suresh Prabhu will be meeting top leadership of iPhone maker Apple in Davos next month to discuss their plan about setting up manufacturing facilities in India.
The Minister also said that the Indian government has already begun talks with the US-based company and it is ready to consider the demands of Apple Inc for setting up its manufacturing facility in the country.
“We are still talking to Apple. Negotiations are ongoing. If they agree, we will like them to set up offices in India as well. I am meeting Apple’s top leadership in Davos in early January,” Prabhu told PTI on Friday.
“When their offer came two-three years back and today, the situation has changed for them as well as for us. So, it is a good time to meet and discuss and finalise,” he added.
When questioned about tax and other concessions being demanded by the company, the minister replied, “We can look into that,” adding that this demand can be negotiated.
For Apple, he said, it is a good time to come to India and “we will be very happy to receive them.”
Concessions demanded by Apple
The company had earlier demanded certain concessions for setting up its manufacturing unit in the country. It had asked for duty exemption on manufacturing and repair units, components, capital equipment and consumables for smartphone manufacturing and service/repair for a period of 15 years.
In addition, the company also sought relaxation in the mandated 30 per cent local sourcing of components, along with 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.
As it has no wholly-owned store in India, the company sells its products through distributors such as Redington and Ingram Micro in the country.