Apple is currently in negotiation with the Indian government so that it can manufacture iPhones locally in India. The company is going to have high-level meetings with officials from the Department of commerce, industry policy and promotion, revenue, environment and forest, electronics and IT. Apple is readying itself to manufacture iPhones in India in collaboration with its top original equipment manufacturer in Bengaluru. The full-fledged manufacturing should start by 2018.
The company had said an official letter to the Indian government expressing his desire to manufacture iPhones locally in India, sometime in November 2016.
Apple is also seeking long-term duty exemptions but so far there is no headway regarding this. There is also some problem with the logo. Apple has asked for many tax exemptions but the talks haven’t yet succeeded, but there is great possibility that things will be sorted out eventually and manufacturing will start.
Many are arguing that if different manufacturers are already working in India without any tax exemptions, why is Apple seeking these tax and duty exemptions? According to this report, 42 companies are making mobile phones in the country including Huawei and Xiaomi and these companies have never approached the Indian government for any kind of exemptions or any kind of help.
Although the Indian government, in order to encourage multinational companies to set up manufacturing plants in India, gives many incentives, Apple seems to be asking for incentives that are not given to any other company and this seems to be creating hurdles in the way of manufacturing iPhones in India.
Reportedly, when the Apple CEO Tim Cook met the Indian by Minister Narendra Modi, the PM suggested Tim Cook to manufacture iPhones in India and Tim Cook showed lots of eagerness.
The biggest benefit of manufacturing iPhones locally in India will be that the iPhones will be much cheaper compared to what the cost right now is, because there will be no import duty to pay.
Right now iPhones are manufactured mostly in China by Foxconn, a company that also manufactures smartphones for Xiaomi and OnePlus.
In India, the iPhones may be manufactured by the Taiwan-based OEM called Wistron.