India eyes jobs in exchange of tax cuts to Apple

BT Online   New Delhi     Last Updated: June 6, 2017  | 18:29 IST
India eyes jobs in exchange of tax cuts to Apple

Apple Inc will have to invest and create jobs in India in exchange of the tax exemptions it seeks to expand operations in the country. India will consent to Apple's demands on a quid pro quo basis, a Bloomberg report quoted the authorities looking after the matter.

However, no government official confirmed the development, the report said.

The Cupertino tech giant started making iPhone SE at its Taiwanese contract manufacturer Wistron's plant in Bengaluru towards the end of May this year under the aegis of 'Make in India'. Modi government has been pushing its flagship foreign investment programme tooth and nail with the motive of creating jobs and increasing investment in the economy.

Apple wants to bring its component manufacturers to India to make parts and export finished phones and is seeking tax concessions on import of key components for 15 years to expand business. The Finance Ministry had turned down these demands back then.

ALSO READ: Apple selling 'Made in India' iPhones on trial basis

Ravi Shankar Prasad, the federal minister for Electronics and IT had disclosed last month that government officials were in touch with Apple and other mobile phone manufacturers for expanding facilities and setting up new plants.

While any company specific benefits might not be doled out to Apple, government may look into developing the sector as a whole to promote manufacturing in it and create jobs.

The maker of iPhones and iPads shipped 2.5 million devices to India last year, making it the best in terms of revenue. However, vendors ranked it only 10th in the December quarter, the report quoted Counterpoint Research.

While Apple's main manufacturing partner Foxconn Technology has expressed plans to assemble phones in the India for brands like Chinese handset maker Xiaomi, it assembles majority of the iPhones in China, the report said. Xiaomi began making its first smartphones in India in the middle of 2015.

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