The Indian Government has dropped Contentious Clauses in their new 'Production Linked Incentive' Program that could be Positive for Apple
Earlier this month Patently Apple posted a report that discussed India's "Production-Linked Incentive (PLI) scheme that had been designed to address disadvantages global supply chains faced in India vis-à-vis say China and Vietnam. Although sources close to the matter stated that there are some clauses that had to be ironed out first before Apple could bite, government officials were confident that most concerns would be seriously reviewed. Prime Minister Narendra Modi met with top Apple and Samsung executives in late December to kick start the new program.
We're learning today that the Indian government has dropped contentious clauses including the evaluation of plant and machinery to be brought from China and South Korea, which had been opposed mainly by Apple, now paves the way for the iPhone maker and others like Samsung, Foxconn, Oppo, Vivo, and Flextronics to make a larger play in local production using the production-linked incentive (PLI) scheme.
An official aware of the discussions at the meeting told India's Economic Times (ET) that "The empowered committee of secretaries met on Friday and decided to remove the clause, which evaluated plant and machinery brought into India at 40% of its value, and has agreed to a few other changes so that manufacturing could shift to India in a big way,”
The official added that "The irritants have been resolved." India is trying to attract American investment with pressure on US companies now to diversify manufacturing out of China under the ‘China plus one strategy.' For more read the full report by the Economic Times of India.