Apple seeks tax breaks for suppliers to set up manufacturing in India

After setting up assembly units in India to assemble the iPhone SE in Bengaluru, Apple is now looking to establish its manufacturing units in India and is seeking tax exemptions for its suppliers from the Indian government.

In October, Apple had submitted a list of prerequisites to the Indian government which included duty exemption on raw materials for producing components and capital equipment for 15 years to manufacture the entire range of iPhones and other devices in India. In order to set up a manufacturing unit in India, Apple has said that it would be bringing the required ancillary production units.

In response the government has stated in order to provide Apple the benefits, it would have to do so through a new policy that would encompass all manufacturers in India to preserve fair competition in the industry. As such, if a new policy is introduced, Apple’s traditional rival Samsung and upstart Oppo could also benefit from tax exemptions in the industry and provide a major boost to India’s manufacturing aspirations.

Apple’s interest in India has been increasing after it witnessed a drop in sales in China, which is considered to be a major market for iPhones after the United States. The Cupertino-based company will be looking to improving its market share in India, which is the world’s third largest market for smartphones. apple presently has only 2-per cent of the smartphone market share in India.


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