A group of senior officials from key ministries including Commerce and Finance will meet early next month to evaluate the incentives requested by US tech giant Apple for establishing a manufacturing unit in India.
Officials from multiple departments including Commerce, Industrial Policy and Promotion (DIPP), Revenue, Environment and Forests, and Electronics and Information Technology (MeitY) will participate in the discussions. The inter-ministerial group is expected to convene in the first week of January, according to government sources.
In its proposal to the Indian government, the Cupertino-based company has sought various tax concessions and incentives to begin local manufacturing operations. However, government officials have indicated that Apple should consider establishing its manufacturing facility without demanding additional support beyond existing schemes.
Existing Policy Framework
The Modified Special Incentive Package Scheme (MSIPS) provides financial incentives to offset operational disadvantages, along with investment subsidies for electronics hardware manufacturing. The scheme also extends additional benefits for units operating in Special Economic Zones. “Several companies are already manufacturing mobile phones in India without requesting extra incentives,” a senior official noted. “The current policy framework through schemes like MSIPS provides adequate support for electronics manufacturing.”
Apple currently manufactures its products across six countries, including the United States, Japan and South Korea. This comes after the Finance Ministry in May rejected Apple’s request for exemption from the 30% domestic sourcing requirement for single-brand retail operations.
The company had argued that its cutting-edge technology products made local sourcing unfeasible. The government also denied Apple’s separate proposal to import and sell refurbished phones in the Indian market.
While Apple operates company-owned stores in several major markets including China, Germany and the United States, it currently relies on Indian distributors like Redington and Ingram Micro for sales in India.
The government’s manufacturing push aims to curb electronics imports, which grew from ₹1.95 lakh crore in 2013-14 to ₹2.25 lakh crore in 2014-15. Officials emphasize that existing policies provide sufficient support for manufacturers to establish operations in India.
