Making iPhones in India might not be easy for Apple, may not get easy concessions from government

Apple has been planning to start manufacturing iPhones in India but according to a top-ranking government official, the company's demand for exemptions as part of its investment plan will come under close scrutiny.

"No other company has made these demands which Apple is making, so why should they be given special treatment?” a high-ranking government source told ET.

Apple has sought concessions related to taxation, local procurement and labelling requirements.

During his visit to the country last year, Apple CEO Tim Cook had said India was the next big market for the company. Prime Minister Narendra Modi had urged Cook to set up factories in India when they met during that trip. The government currently provides subsidies for investments in special economic zones in order to woo investors.

Earlier, Apple has asked for permission to set up fully owned retail outlets by forgoing the compulsory 30% local sourcing norm on the grounds that it was bringing cutting-edge technology to India. The finance ministry didn't allow the exemption.

Since then, the company has been planning to set up factories in India as it looks to shift some of its manufacturing from China. It manufactures products in six countries, with most of them being made in China.

The company is said to be planning to assemble phones in Bengaluru for the local market through a contract maker. Some reports said the company may also be considering plants in Ahmedabad and Gurgaon. Apple has refused to comment on such reports.

Rivals such as Samsung have started sourcing parts from within the country while exporting products made at plants in Noida and Sriperumbudur.