Apple can import at zero duty, but has to scale up local manufacturing

The Indian government would allow Apple to import some components at zero duty, but in return, the iPhone maker will have to increase local manufacturing in the country in a phased manner.

As per Aruna Sundararajan, Secretary for the Ministry of Electronics and IT, the ministry is currently holding talks with Apple for its proposal to locally manufacture its components for which it had sought several concessions, including waiving off import duty for 15 years on products that need to be imported.

Also read: Apple has started assembling iPhone SE in Bengaluru

"They are saying that some of their components cannot be manufactured in India because that requires certain kind of manufacturing capability. Our roadmap for indigenisation also envisages only those products that can be (locally) manufactured. There are many products that we also admit that cannot be manufactured, so they can be imported duty free," said Sundararajan.

As per industry experts, Apple is asking for special concessions for its component manufacturers over and above what is already been offered by the Indian government.

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It was after Indian government’s decision to allow incentives for domestic manufacturing that several companies set up their local factories in different parts of the country. However, most of them are merely assembling phones in these factories after importing components from abroad.

Sundararajan added that the government has made a list of components that can be manufactured in India over the next three, five or seven years. "So Apple's roadmap is slightly different (from ours) and we are looking at harmonising it."

(Image source Phone Current)