Apple’s manufacturing facility: Government to consider the company’s demand

Government has called a meeting of the top officials of various ministries to look into the demands sought by Apple to start its manufacturing facility in India. the Cupertino based electronic giant has several manufacturing facilities and assembly lines in different countries; but not much production presence in India which is a fast-growing market for iPhones.

Senior officials from DIPP (Department of Industrial Policy and Promotion), revenue, environment, forest etc. are scheduled to meet in January to consider various Apple demands including tax concessions and other incentives.

Apple is expected to make a market seeking type of manufacturing facility in India as it fears to devoid any production location in the world’s fast growing mobile phone market. The company is having production locations in several countries though China and Brazil having the two major assembling lines.

Industry observers predict that Apple is not going to construct any chip fab or screen making unit. Most probably, the company may be aiming at a low quantity assembly line. Given the infancy stage of electronic component manufacturing, Apple has to deploy all of its effort to make its production presence in India.

On the concession side, Apple is demanding tax incentives which the government thinks difficult to offer. Such a concession has not offered to any other firms. Some other incentives demanded by the company on labour and branding side will be considered by the government.

Though India is the third largest mobile phone market globally, iPhone has a l ow market share of 2% because of its high price tag. Rivals like Samsung and Chinese phone brands are in an expansion mode over the last few years and are thinking about boosting manufacturing presence.

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