Representatives for Apple and the government of India discussed the expansion of production of the iPhone in the country. The authorities want to tax imported components to support local manufacturing, reports the edition 9to5Mac.
From the beginning of 2017 iPhone SE is made in India. This fall, the company Wistron — Indian partner, Apple announced plans to build another plant, with an area of over 40 hectares.
In 2017, all of the components for smartphones imported. The current agreement allows parties to bring in the most items without paying taxes, fees and duties. Apple pays tax on the importation of a certain number of components such as battery, charger and headset, in the amount of ten percent of the cost of the items. In turn, the authorities intend to increase the list of components imported duty-free.
This is due to the fact that Prime Minister Narendra modi intends to develop the brand “Made in India” and stimulate domestic production. According to authorities, a phased introduction of the tax will encourage big companies to open factories in India.
The Prime Minister assured that, if Apple still wants to make the iPhone available, she had no other choice, except how to establish manufacturing of all components in India. At the end of 2017, the Corporation is only 2% of the Indian electronic devices market. It is unlikely Apple will abandon the region with huge growth potential.
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