Looks like Apple is having a hard time trying to convince the Indian government to comply with its demands. Notwithstanding the company’s arrangements to start the production of its iPhones in the nation, the Indian government stays resolved to not collapse to Apple’s requests.
When questioned as to whether the legislature has acknowledged the iPhone creator’s requests, trade, and industry minister Nirmala Sitharaman told Rajya Sabha that the ministry has, in fact, refused to comply with most of them.
Apparently, Apple has put across some unprecedented requests before the administration.
Furthermore, she had this to say on the topic, “Apple India has sought concessions, including duty exemptions on manufacturing and repair units, components, capital equipment including parts and consumables for smartphone manufacturing and service/repair for a period of 15 years,”.
Apple has set its sight on India, viewing it as a center for huge potential. Even the company’s CEO was all praises for the company when came to visit last year. But, in all seriousness, the task appears a bit difficult.
For starters, more than 50 percent of iPhones sold in the country a year ago were iPhone 5s models, which is four years old and goes for very less (comparatively to the newer ones), in the nation.
What the organization needs to do here is bring down the costs of the iPhone, which are higher in India because of local import laws.
To counter this, the company sought to seek permission to sell refurbished versions of the phones, which was again denied.
Presently Apple’s greatest wager at making iPhones (and perhaps to motivate India to say yes to repaired iPhones) is whether it could begin manufacturing locally.
The Indian government offers different advantages to foreign organizations to setup production plants in India simply because these help with employment and encourage the development of urban infrastructure.