Apple preparing to enter talks with Indian government on opening local manufacturing plant


After relaxing its regulations that required foreign tech companies to locally source at least 30 percent of products sold in retail stores, the Indian Government said last week that it won’t give in to any more demands by Apple, or any other tech company that intends to sell its products in physical brand stores in India.

At the end of last year, Apple asked for a tax break to set up its own manufacturing plant in the country, but the Indian government was reluctant to grant the company any more concessions, as it would have to do the same for 42 other manufacturers as well.

The US-based tech giant will reportedly enter talks with the Indian government on opening a local manufacturing plant on January 25. According to sources familiar with the situation, Apple is unlikely to put forth any other major demands for concessions.

By setting up its own manufacturing plant in India, Apple will be able to open direct retail stores in a country where it has very limited market share.

During previous visits in India, Apple CEO Tim Cook was more interested in discussing the possibility of his company selling refurbished products in one of the biggest smartphone markets in the world, but talks with Indian PM Narendra Modi allegedly fell through.

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14 Comments

1. sam3k

Posts: 130; Member since: May 02, 2013

Lol smart move apple, you know you are loosing ground in India so this might change you're luck..

7. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Can anyone in India even afford an iPhone more expensive than the iPhone 4? Remember Apple resurrected the iPhone 4 just for India.

8. Papa_Ji

Posts: 850; Member since: Jun 27, 2016

Apple products in India = Trademark of fake people..

10. phonearenarocks

Posts: 606; Member since: Mar 26, 2015

Got to know from an offshore counterpart in India, when I went there as an expat for a short time, that people buy more Sammy phones in the price range > $450 than Apple. People generally don't like apple except for a minority of people.

14. nedimko_wot

Posts: 115; Member since: Oct 01, 2016

no tweet from trump yet about this something is going to heppen

2. Subie

Posts: 2364; Member since: Aug 01, 2015

So when countries like India enforce protection laws to force companies to produce product in their country nobody cries foul. But when America wants to do the same the haters come out to hate...

3. kiko007

Posts: 7493; Member since: Feb 17, 2016

Yeah it's hypocritical. However, looking at the two GDPs and median incomes, I can see the allure for countries like India to enforce certain requirements.

9. Leo_MC

Posts: 7432; Member since: Dec 02, 2011

Money should never be a reason to defend stupid ideas. Has anybody stopped Indian people to earn more (and I'm talking about every underdeveloped country)? Oh, they chose an administration that didn't give a f**k about developing their country, they don't study enough (how many of their universities are in top 100?), some of them are fighting and killing innocent people because of their dumb religious beliefs etc. Should US adopt a law that says that at least 30% of Indian tea should be produced locally?

11. kiko007

Posts: 7493; Member since: Feb 17, 2016

"Money WILL ALWAYS be a reason to defend stupid ideas." FTFY. Reasoning: Wallets run countries. Not people. Not militaries. Not politicians. Mula.....through and through. And that's every civilization in every era throughout human history, unfortunately. To answer the other questions: Yes. Not sure....will check. Hell no. Carry on.

13. Leo_MC

Posts: 7432; Member since: Dec 02, 2011

Only when there are involved stupid people. I don't agree that money run countries; take Iceland for instance, Lichtenstein (they both have less money than those living in Chelsea, yet their level of civilization and wellbeing is amongst the highest). Go to Greek islands, Tuscany or Tenerife and you'll find the same thing. My questions were retorical. Indian people are more than ok (they are the same as caucasians or black people); a lot of them are smart and hardworking (amongst a lot of lazy ones), they just need to focus their efforts in India, if they want to make it a great nation it could be. The same goes for people from every nation on earth.

4. kishore3k

Posts: 102; Member since: Mar 11, 2016

Not only production ,vat is only 8% where for imported phones it is 14.5% .there is also import duty of 14% . If there is no cutting edge technology available for manufacturing components then you can import it for only 1% of duty .

5. Rydsmith unregistered

That's a terrible comparison. Look at the GDP and incomes as Kik007 has pointed out. It's not even close. The monthly income in India is $1,497/mo. In America that is $3,769. It is not even close, now look at the additional costs with employment in America that India doesn't have such as insurance, healthcare, etc... Now with the uneducated demanding $15.00/hr to flip burgers good luck getting factories here.

6. xondk

Posts: 1904; Member since: Mar 25, 2014

Plenty of people cry foul, just fyi, you just don't hear about it in the news, because its India. The problem with india is used as a labour force by many companies, like a good bit of other countries, yet all of it goes out of the counties, so the companies get a cheaper product, but country doesn't get much out of it. This hurts the India significantly more, then similar comparison to US, technically US would earn because Apple is based in it, and taxes go in US, _however_ due to various tax loopholes and whatnot, several big companies end up paying insanely little tax. The solution however at this end of the system, to create import tax, is a way to try to compensate for that, "Either pay that or build it here" so the US earns in both aspects of the manufacturing chain. So yeah US and India both want the same thing. However US (and a lot of countries in general) could fix a big part of this by patching the leaky siv of a tax system. Instead of just trying to pour more water into it. Where India is basically being taken advantage of, and wants a fair bite of the cake.

12. belovedson

Posts: 1061; Member since: Nov 30, 2010

I agree. Apple needs to be taxed heavily or provide jobs for Americans

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