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Indian government considering Apple’s New Dehli plant proposal

New Delhi

The Indian government is currently considering Apple’s latest proposal for a manufacturing plant in New Delhi, Union Minister Alphons Kannanthanam revealed.

Apple is looking to expand its operations in India due to it being the firm’s fastest growing market. However, although the Indian government is keen for the US tech firm to set up shop in the country, Apple is reportedly seeking a number of concessions for setting up a manufacturing unit there.

"We would like Apple to come in India and we are examining Apple's proposal," said the Minister of State for Electronics and IT.

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Concessions that the company is after include duty exemption on the manufacture of smart phone repair units, components, equipment and consumables for a 15-year period, in addition to a relaxation of the mandatory requirement that 30% of components be sourced locally.

Such concessions seem demanding, but Apple will likely bring more to the economy than just a single manufacturing plant should they be granted.

Apple has no wholly-owned store across India, selling many of its products through distributors including Redington and Ingram Micro. However, should the company build a manufacturing unit there then this would likely change.

Whether or not this will go ahead remains to be seen, as the then Commerce and Industry Minister, Nirmala Sitharaman, previously stated that Apples demands would not accepted back in March.

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