India's Commerce and Industry Minister signals support for Apple's manufacturing expansion...

Posted:
in General Discussion
Efforts to increase manufacturing of Apple products in India have received support from the country's Commerce and Industry Minister Suresh Prabhu, with the official claiming the Centre will support the company in setting up new lines, and is apparently awaiting a formal proposal.




Minister Prabhu claims the Centre is willing to assist in contacting all state chief ministers to help find the company the best deal for a manufacturing facility in the country, reports the Economic Times. Speaking in an interview, Prabhu offers the Centre's assistance in getting such a project off the ground.

"We will be very happy to receive Apple, one of the top brands in the world," admits Prabhu. "We are willing to find out if there is any difficulty they may face. We will be more than happy to resolve that difficulty. So we will await a formal proposal."

Apple has made some progress in manufacturing in India, working with local assembler Wistron in producing the iPhone SE for domestic sale, and possibly the "iPhone SE 2." Wistron has reportedly started searching for potential areas to build a new plant, aimed at expanding Apple-related manufacturing efforts, and has apparently shortlisted some parcels of land near an airport in Bangalore for a 100-acre facility.

The existing Karkataka Wistron facility, used for iPhone SE production, started operations in mid-May, and was created as a way for Apple to appease the Indian government by providing jobs. The Indian iPhone SE is intended as a cheaper version of the smartphone, which is hoped by government officials to cost as much as $100 to buy compared to variants produced in other regions and imported.

Previously, Apple requested various concessions as a condition of production in India, including a 15-year tax holiday on imported components and equipment, and a relaxation of the country's 30-percent local sourcing mandate. Previous Commerce and Industry Minister Nirmala Sitharaman advised in March that the Indian government had not accepted "most of the demands" from Apple.

Apple is also believed to be keen in setting up its own retail presence in India, to bypass the current system involving a network of distributors and third-party stores in the region. Similar issues, including the 30-percent sourcing stipulation, hampers the retail project's progress, but Indian government officials signaled in October that they are reconsidering Apple's requests.

Comments

  • Reply 1 of 7
    65026502 Posts: 376member
    I wonder if the US demanded iPhones sold in America are made in America would get the same response from Apple as India got when they made the same demand.
    jbdragon
  • Reply 2 of 7
    Good. I want Apple to take over ,the Indian market,the Bangladeshi market, and the Pakistani market. But not the lowest end ,the $250-$550 zone.
    Hopefully ,1st gen SE can hit the sweet $200-$250 zone.
    watto_cobra
  • Reply 3 of 7
    dewmedewme Posts: 3,814member
    6502 said:
    I wonder if the US demanded iPhones sold in America are made in America would get the same response from Apple as India got when they made the same demand.
    Not really much to wonder about. The gravity of the response would depend on whether the same demands were placed on ALL smartphone manufacturers or only instilled punitively on Apple - and for what reason? But you can very easily imagine that such demands could quickly escalate to many other product categories, several other industrial countries could reciprocate in similar fashion, and the whole notion of free trade as we know it could be in the toilet along with hundreds of millions of jobs. What's the upside? 
    muthuk_vanalingamJWSCjony0
  • Reply 4 of 7
    jbdragonjbdragon Posts: 2,246member
    I don't think Apple should do this at all. Not unless building iPhone there was their plan all along. Can you imagine if every country expected Apple to just make iphones in their country if they wanted to do business there!!!
    JWSC
  • Reply 5 of 7
    jbdragon said:
    I don't think Apple should do this at all. Not unless building iPhone there was their plan all along. Can you imagine if every country expected Apple to just make iphones in their country if they wanted to do business there!!!
    India is a huge market and they know it, and the the cost of labor there is also relatively low, so working out a quid-pro-quo with Apple makes sense for both sides.  The same strategy wouldn't get off the ground for any lesser Slobovia that would like to try it, so don't worry about Apple setting a bad precedent with India.
    anantksundaramMacProwatto_cobrajony0
  • Reply 6 of 7
    6502 said:
    I wonder if the US demanded iPhones sold in America are made in America would get the same response from Apple as India got when they made the same demand.
    If the costs and quality of manufacture compare, sure, why not?
  • Reply 7 of 7
    JWSCJWSC Posts: 1,012member
    dewme said:

    ... and the whole notion of free trade as we know it could be in the toilet along with hundreds of millions of jobs. What's the upside?  

    Haven’t you heard?  The free market and the market economy are in full retreat.  It’s a me first world where everyone ends up last.

Sign In or Register to comment.