The Politics over Opening an iPhone Plant in India Takes another Twist as Apple Seeks Government Incentives up Front
Indian politicians have been playing a tough game with Apple this year with several loud battles fought out in parliament with India's IT Ministry led by Minister Telangana Chandrashekar Rao who informed Parliament that Apple had not yet submitted any proposal to open a manufacturing plant in India. The so-called green light for Apple opening flagship stores in India has really been more like a moving goal post with India reluctant to give Apple the benefit of the doubt that they'll open an iPhone plant.
Late last month a supply chain rumor claimed that Foxconn could start iPhone production in India late next year. Now we're learning that before gives Foxconn the green light on this project it wants India to give them some incentives towards opening a plant in their country.
The Economic Times of India reports today a Government official has revealed that in a communicattion to the Indian government, Apple has asked for incentives to open a plant to key goverment departments related to Electronics and Information Technology.
The government does provide incentives under certain circumstances and for building in specific economic zones.
Back in June we reported that Prime Minister Modi wanted his government to grant Apple a grace period in which to open a plant and give Apple the green light for their flagship stores. More specifically, we noted in that report that "Under the new regime unveiled Monday, single-brand retailers have a three-year grace period in which they can operate stores, before they have to comply with the local sourcing requirement. Companies that can show they are selling state of the art or cutting edge technology can benefit from a relaxed local sourcing regime for "another five years."
But in Parliament they shot that proposal down. Apple had to open a plant, period.
If the Inidan government wishes to play hardball, then so can Apple who now wants incentives to open a plant in India. Squarely the ball is now in India's court. Either they provide incentives for Apple to take a gamble on an Indian plant or reconsider the original deal that was shot down in parliament.
In September Patently Apple posted a report titled "India Demands that Apple Devices be Embedded with New Government Biometric Security System." On one hand India is begging for investment in their country and on the other they're playing hardball and making demands where they want to control devices like the iPhone for "security reasons."
In the end, even if the Indian government decides to bend and provide incentives to Apple, the issue over India's new cyber security proposals will have to be resolved. So the matter of Apple opening stores and/or plants next year has many moving parts and it's beginning to look like Apple's plan to move quickly into India could get bogged down in never ending red tape.
About Making Comments on our Site: Patently Apple reserves the right to post, dismiss or edit any comments. Those using abusive language or behavior will result in being blacklisted on Disqus.
Comments