BackDIPP hints at possible easing of norms for electronics makers such as Apple
DIPP secretary Ramesh Abhishek said the government would not take decisions or make policy for a particular company
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New Delhi: The department of industrial policy and promotion (DIPP) has hinted that manufacturing policy norms may be liberalized for all electronics manufacturers on the strength of demands made by Apple Inc. as a pre-condition to make its iPhones in India. The Cupertino, California-based company’s demands include exemption from local sourcing rules and easier norms for importing components.
DIPP secretary Ramesh Abhishek said the government would not take decisions or make policy for a particular company. “If any decision is taken, it will be applicable for everyone, it will be applicable for the sector. No company-specific decision can be taken. That is very clear," Abhishek said at a press briefing on Monday. He said Apple had submitted certain issues that the company would like the government to consider. “We had a meeting of all the concerned departments. We have asked them to look at those issues and take a view. No ministry has taken a final decision on any of those issues but we are in touch with them," he added.
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Abhishek said the issue was not Apple’s proposal alone. “We are supporting every manufacturer, especially high-value manufacturing in this country. We would definitely like to promote this. So we are coordinating response from all the concerned ministries. But no final view has been taken on any of those issues yet," he added. The Economic Times, quoting revenue secretary Hasmukh Adhia, on Monday reported that the government may find it difficult to accept Apple’s demand for a 15-year exemption on countervailing duty (CVD) on imported components as the country plans to roll out the goods and services tax (GST) in the coming financial year.
“We have forwarded the demands to the revenue department. They have been extremely busy with the budget. So they will take a view and let us know," Abhishek said. Commerce and industry minister Nirmala Sitharaman, who was present at the press briefing, said the revenue secretary had only pointed out that exemptions to individual companies may not be possible under GST.
Last week, the Karnataka government had issued a statement confirming that Apple India Pvt. Ltd, the Indian arm of Apple Inc. had reached an agreement with the state government to set up a manufacturing plant in the Peenya Industrial Area of Bengaluru. “Apple’s iPhones will be made in Bengaluru and all devices will be targeted at the domestic market," Karnataka information technology (IT) minister Priyank Kharge said.
Apple is expected to start production for the Indian market in April, Kharge said; the company has tapped Taiwan’s Wistron Corp. to put together its phones in Bengaluru.
Apple India reported a profit of Rs294 crore in the year ended 31 March 2016 on revenue of Rs9,997 crore. It recorded sales of over $1 billion in India in 2015, highlighting the growing importance of this market, results filed with the registrar of companies show.
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