US tech giant Apple is reportedly planning to set up a plant in Bangalore directed towards the production of iPhones, according to a Times of India report.
The reports further adds that the plant will be set up by Apple’s Taiwanese manufacturing partner Wistron, at Peenya in Bangalore and starts production from April, next year. Apple has reportedly been discussing the plausibility of making the iPhones in the country, with the government, with an aim to make inroads in the South Asian market.
Recently a source told FE that, the company had sought information on the kind of incentives, including taxation and other things, it would be provided if it starts manufacturing in India. Sources also said that an inter-ministerial panel might be discussing the likely incentives Apple would be provided if it wants to manufacture or assemble in India. The meeting between ministries of finance, industry, electronics and information technology, and commerce and environment could happen next week itself. Apple has also reportedly forwarded a wish list to the government.
As of now most of the products by Apple are produced in China, generally, by Foxconn Technology and in India it sells through local distributors and retailers. Earlier, Apple had sought permission for importing and selling of refurbished iPhones in the country but was opposed by many ministries including environment, industry and telecommunications. According to a report by IDC, India in 2017 will become the second biggest smartphone market after China, and the US will go to the third spot. This will give a big boost in the sales of its devices, especially iPhones which still have not made much of a mark in a big smartphone market like India.
According to a PTI report, recently there was a meeting between officials from Apple and Department of Industrial Policy and Promotion (DIPP) Secretary Ramesh Abhishek where matters of Foreign Direct Investment were discussed. The Wall Street Journal said that sources have informed that there was a letter given by Apple to the Indian government and later senior trade ministry authorities had a meeting with the company officials.