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Apple Execs To Meet Government Officials In Delhi Next Week To Discuss iPhone Production

Apple is seeking tax and labeling waivers from the authorities.

17/01/2017 11:27 AM IST | Updated 17/01/2017 11:51 AM IST
Yui Mok/PA Wire

The Apple Inc. team is set to meet government officials next week to discuss their plans for setting up manufacturing units in India. A report in the Economic Times suggests that personnel from multiple government ministries such as revenue, industry, and information technology will be present in the meeting.

The American multinational, with headquarters in Cupertino, California, has been seeking tax and labeling concessions as a precondition to setting up a production base in India. Apple has reportedly asked for a 15-year waiver in custom duties and labeling relaxation on its products. Earlier, in order to open Apple retail stores in India, the company had sought exemption from the 30 percent local sourcing rule. The exemption was not granted.

Apple is fighting a major tax battle in Ireland over manufacturing discounts, after EU directed the Irish government to bill the company $14 billion.

"Several companies in India are manufacturing mobile phones in India. Nobody is asking for additional incentives. Currently, the government provides sufficient support to boost electronic manufacturing," a government official had said earlier.

With Apple's China sales falling, of late the company has been turning its attention to India. The smartphone giant had tried to get permission to open its own stores in the country early last year.

Late in 2016, reports began to emerge that Apple was keen to produce iPhones in India in partnership with the Taiwanese manufacturer Wistron. Wistron has sent an application to the Karnataka government, wanting to expand its existing facility which is situated in Bengaluru.

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