No Concessions For Apple in India As State Mobile Manufacturing Policy Up For Review [Update]

Discussion in 'Mac Blog Discussion' started by MacRumors, Jan 18, 2017.

  1. MacRumors macrumors bot

    MacRumors

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    The Indian government has decided not to offer special concessions to Apple as part of negotiations as the company looks to build its first manufacturing plants in the country.

    According a report in the India Economic Times, New Delhi will instead review its entire policy on mobile manufacturing as part of a wider effort to promote its 'Make in India' initiative. This could meet some of the demands that Apple has made as well as benefit other phone makers, said officials.

    [​IMG]

    The issue will be looked at in detail at a high-level meeting between Apple executives and state officials set to take place next week. According to Wednesday's report, representatives from revenue, industry, and IT government departments will consider Apple's requests, which include a 15-year customs duty holiday on the import of iPhone kits, new and used capital equipment, and consumables.

    Last year, Apple requested permission to set up its own retail outlets in India without being subject to the state's compulsory 30 percent local sourcing rule, claiming it was bringing cutting edge technology to the country. The ministry of finance denied the request as it did not consider Apple's products to fall into the cutting edge category.

    According to officials, India's rationale for looking anew at its own trade policy is that it must follow the same set of principles prevalent elsewhere which have helped businesses become global manufacturers. India is already home to a crowded mobile phones market, with Chinese firms Huawei and Xiaomi among some 42 competing handset makers. Apart from Apple, no other company has approached the government for any incentives, people with knowledge of the matter said.

    Update: India will consider Apple's request for incentives to invest in the country with an "open mind", IT minister Ravi Shankar Prasad has told Reuters this morning. "We will very much like Apple to come and have a base in India," Prasad said.

    Article Link: No Concessions For Apple in India As State Mobile Manufacturing Policy Up For Review [Update]
     
  2. d5aqoëp macrumors 65816

    d5aqoëp

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    Excellent. The first Indian government to show some spine and not bending before a large corporation.
     
  3. HappyDude20 macrumors 68030

    HappyDude20

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    Yes I agree.

    Very smart of india to proceed with caution and look after its citizens long term as oppose to making a quick buck.
     
  4. Michaelgtrusa macrumors 604

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  5. jaymie1983 macrumors member

    jaymie1983

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    Apple might be able to exploit some parts of the world, the Indians are wise to hold their ground
     
  6. 2010mini macrumors 601

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    #6
    Eh...

    TC just probably needs to drop off an extra suitcase of cash is all.

    /sarcasm
     
  7. thatanonymoususer macrumors regular

    thatanonymoususer

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    I wonder what products fall under the category of cutting-edge technology. So far it looks like military and healthcare when I look around online.
     
  8. niun macrumors 6502a

    niun

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    Holy cod! Is India really that far behind?
     
  9. Cineplex macrumors 6502a

    Cineplex

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  10. mateytate macrumors regular

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    On top of what?
     
  11. Amazing Iceman macrumors 68040

    Amazing Iceman

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    A friend travels to India very often, and the photos she brings back reflect all the misery most of their citizens experiment.
    Not everyone there has the privilege of being rich or belonging to a higher caste.
    The reality is very sad. These are the people who could benefit from an Apple manufacturing plant.
    True, they may not make much money, but at least some money is better than no money.
     
  12. barkomatic macrumors 601

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    #12
    Imagine that, there are governments out there which require corporations to manufacture domestically a portion of the goods they sell in their country--and assigns a heavy tax on imports. How anti-globalist and evil.
     
  13. Aluminum213 macrumors 68040

    Aluminum213

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    Good for India for not bending over backwards for Apple


    Now imagine if America demanded iPhones and iPads were made in America
     
  14. RickeshPatel macrumors member

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    The environment and pollution norms has no affect on Apple's thinking. If anything if they manufacture with clean energy in India, they may help motivate and lead other companies into following suit.

    With the new PM, it will take time for things to change as the eradication of corruption has to trickle down to the bottom. I do agree India is far behind in some aspects. A few individuals in govt. have come out against using credit cards for government work and want to continue using cash--what does that tell you? Even many administrative govt. offices and state-run hospitals have yet to take credit cards and there is a shortage of cash in the system in which a lot of people are suffering as they have no money to pay for health, living, and food expenses. This will also lead decreased growth in the economy. 87% of the cash in the system (500 and 1000 rupee notes) had to be replaced at a bank by the end of 2016. 3% of the population pay income tax, if people begin to pay income tax, then the cost of imported goods may go down. In the meantime, India does not want to bring in companies for a small gain now and not for the long term when they have nothing to gain later as Apple increases market share in India.

    Also look up the smart cities initiative. With the demonetization, the government has have placed large chunks of cash into the banking system while also collecting income taxes on certain amounts, so now they are not worried about money. BUT I am not saying I agree with the move. A lot of the pollution starts with taxis (4 wheel and rickshaws), goods carriers, and buses.
     
  15. FriednTested macrumors 6502

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    Lol. These ****ing illiterate jokers who have formed the current government won't do ****. I'd rather not get into the nitty gritties of the political/government joke we are suffering at the moment on an Apple forum. :p

    Trust me when I say that the citizens welfare is the last subject on their mind. For reference do read about the demonetisation blunder. Where the government withdrew 87% of the legal currency without having even 10% of the replacement ready. Which cost over a 100 lives and brought the economy to a halt.
    --- Post Merged, Jan 18, 2017 ---
    You are correct. But, alas the current government is extreme right wing and they are increasing the wealth divide along with the caste divide.
     
  16. rohanparekh macrumors member

    rohanparekh

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    If you really want to talk about current Indian politics schemes and specially on demonetization move, I think you should do more homework. Removing 87% of legal currency in overnight and not having 10% of the replacement ready was an intentional move. Ask yourself, you think government of India is that fool to understand this economy situation? You think current officials are bunch of jokers sitting in parliament and decided to do demonetization move for fun? Do you know the purpose of demonetization operation? 100 lives are gone is not directly connected to demonetization move...but thousands of corrupt people, millions of black money amount and properties has been caught in 50 days(and still counting, which is expected to recover black money in billiions of dollars) are direct related to demonetization.
     
  17. CrystalQuest76 Suspended

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    #17
    its long past time for Apple and others to bring manufacturing and more design, back to the United States where those corporate executives live and enjoy life. Its time those corporate executives stop behaving so selfishly and think of their fellow citizens rather than their massive profit margins and personal bonuses.
     
  18. FriednTested macrumors 6502

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    #18
    You really need to stop believing zee news is the holy grail of true information, educate yourself, and stop being a blind bhakt.

    And yes the people in the parliament are a bunch of illiterate jokers. Our ****ing education minister is a 12th standard fail. And our prime minister is a ******** with no qualifications. Anyway I do not wish to discuss further with a blind bhakt who thinks the BJP IT cell propaganda is the whole truth.

    Lol. I pity you bro. Have a good day. Or night.
     
  19. Amazing Iceman macrumors 68040

    Amazing Iceman

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    Only time will tell.
     
  20. konqueror4u, Jan 18, 2017
    Last edited: Jan 19, 2017

    konqueror4u macrumors regular

    konqueror4u

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    #20
    That is not possible sir. They will loose their global markets due to higher input and operating costs. Basically cost of labor in US is 5x more than the rest of the world where Apple is manufacturing and designing its products that is the problem. If that 5x input cost for example has to passed on to the consumers of just one market they will find very few consumers and world will just forget about apple products as they cost 5x more. It is not corporate greediness that is stopping them to manufacture in US it is higher input costs if US can compete with the world on input costs there is no better place to manufacture their products.

    Apple profits are massive because of global economy and they need to keep their products affordable for global customers to maintain their profitability as a business organization.
     
  21. rohanparekh macrumors member

    rohanparekh

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    It has been decades, still congress party's creator's names are showing evidence in boforce scandals. You know very well about 2G, commonwealth, coal and many many more scams has been done so far by your beloved party who taught Indian politicians to do scandals and brought corruption in politics blood from day one. I dont need zee news to know the fact. So, you are saying congress does not have IT cell propaganda? They dont have fake twitter and facebook accounts? of course you don't want to discuss further, coz you know very well, how deadly truth I just wrote. Your cheap language proved enough what kind of logic you preserve. I am sure, some of your black money have been also caught, that's why u feel so jealous of our government. Such a shame human you are. Pity on me? see your language first. Anyone can see who needs pity :D
     
  22. konqueror4u macrumors regular

    konqueror4u

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    #22
    Good move by India they should not change their policies specific to a company. They are doing it right.
     
  23. FriednTested macrumors 6502

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    Lol. Blind as a bat.
     
  24. groovyd Suspended

    groovyd

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    #24
    i'm sure apple understands how third world economies 'negotiate'
     
  25. rohanparekh macrumors member

    rohanparekh

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    #25
    Haha...So, what did you do? Bribe bank officials to put your money back in fake accounts or any other bribe offers to convert into land or gold? :p
     

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