Govt rejects Apple's demands on tax incentives

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The Government has finally cleared its stand on Cupertino-based tech giant Apple in which the company wants to set up its manufacturing unit in the country.

Govt rejects Apple's demands on tax incentives

To a question in Rajya Sabha on whether the government has accepted most of the demands of the iPhone manufacturer, Commerce and Industry Minister Nirmala Sitharaman said: "No", PTI reported.

It was reported earlier that the tech giant is asking for incentives from the Department of Electronics and Information Technology (Diety).

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 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.

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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 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. According to an ET report, the tech giant is planning a six-fold expansion of such outlets by next year, report added.

According to market researcher Counterpoint report, Apple has shipped 2.5 million iPhones to India last year with a third coming in the December quarter. Apple accounts for less than 2 percent of shipments in India where an estimated 750 million smartphones will be sold by 2020.

The report also says that the company ranked 10th in India in the fourth quarter.

Read More About apple | Mobile | news | iPhone

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