Apple seeks modifications in phased manufacturing programme

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Before setting up manufacturing unit in India, Cupertino based tech giant Apple has sought changes in Government phased manufacturing programme (PMP).

Apple seeks modifications in phased manufacturing programme

"The department of electronics and information technology (DeitY) is looking at this. They want alignment of duty structures on the mobile components which it proposes to make here. In the current PMP, Apple's plan is not fitting," PTI quoted an official.

The report said that DeitY is discussing the matter component-wise with the Apple.

To recall Apple had also asked for tax concessions, including lower import and manufacturing duties, and certain policy exemptions from the Government for setting up a manufacturing unit here in the country.

The company also wants duty exemptions on the products to be bought from special economic zones (SEZs). Apple had informed the government this year in January that it is ready with a blueprint to begin manufacturing iPhones in India but wants fiscal concessions.

However, Commerce Minister Nirmala Sitharaman has earlier said no in a reply to a question in Rajya Sabha on whether the government has accepted most of the demands of the iPhone manufacturer.

According to IDC, Apple's move to start manufacturing in India comes at a time when its sales in China, the company's second-biggest market, are slowing. Meanwhile, India's smartphone market is rapidly expanding and is likely to overtake the US to become the second-largest in the world.

Currently, most of Apple's products are assembled in China, primarily by Foxconn Technology Group. The company is also planning to set up 100 small stores under the franchise mode in the pilot phase.



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