Apple preparing to enter talks with Indian government on opening local manufacturing plant
Apple CEO Tim Cook and Indian PM Narendra Modi
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.