Apple Move to India Hinges on Tax Breaks

Apple Move to India Hinges on Tax Breaks
The Cupertino giant is asking for heavy tax concessions on the import and export of product elements.

(CCM) — Apple is looking to start manufacturing its iPhones in the fast-growing Indian smartphone market, and the company is hoping to get massive help from the Indian government. Apple officials are set to hold a meeting with New Delhi state representatives next week, where the company will propose a plan to set up manufacturing units in India within the year. According to a report by Bloomberg, the tech leader is counting on financial waivers from the Indian government, especially one that will give it a 15-year tax leave on imports of product components.

“We would like Apple to set up base in India," said Ravi Shankar Prasad, an official from the Indian Ministry of Information Technology. However, he did not disclose the conditions put forward by Apple. Apple's CEO, Tim Cook, visited India in May 2016 to seek the government's approval to open official Apple Stores across the country. However, India presented a set of prerequisites to which the company needed to adhere before opening its stores in the country, with one of the requirements being that Apple would need to source 30% of its components locally. Now that talks between the two parties have been resumed, there is a chance that Indian decision-makers may relax their policies to allow Apple to operate its stores locally.

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