IBEF: May 24, 2017
New Delhi: The Government of India has agreed to give partial tax concessions to Apple Inc on select imported mobile handset components, which cannot be locally procured, to manufacture iPhones at its Taiwanese contract manufacturer Wistron’s plant in Bengaluru. However, the company would have to procure such components locally over time. The government has offered a phased program to Apple for increasing local value addition in mobile phones manufacturing in phases of three, five, seven and 10 years, as the local capacity builds up, in a bid to boost manufacturing in the country. Once the iPhones and their components are fully manufactured and assembled in India, the prices of the Apple devices will come down drastically. Total value of mobile phones manufactured in India had touched Rs 90,000 crore (US$ 13.90 billion) in 2016, as compared with Rs 54,000 crore (US$ 8.34 billion) in 2015.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.