Karnataka Government welcomes Apple to commence manufacturing operations

Apple’s representatives met with Ministers and officials of Government of Karnataka and had positive discussions about the initiatives in manufacturing and possible collaborations with state Government in other areas.

Things are looking up for Apple as the government of Karnataka on Thursday said that it welcomed a proposal from Apple Inc to begin initial manufacturing operations in the state, in a sign the tech company is slowly moving forward with plans to assemble iPhones in the country.

"Apple's intentions to manufacture in Bengaluru will foster cutting edge technology eco system and supply chain development in the state, which are critical for India to compete globally," the government of the south Indian state said in a statement.

Apple’s representatives led by Ms. Priya Balasubramaniam, VP iPhone operations, Mr. Ali Khanafer (Head, Government Affairs), Mr.Dheeraj Chugh (Director, iphone operations) and Mr. Priyesh Povanna (Country Counsel) met with Ministers and officials of Government of Karnataka and had positive discussions about the initiatives in manufacturing and possible collaborations with state Government in other areas.

A source familiar with the matter told Reuters, however, that no deal, or memorandum of understanding had so far been finalised with the Karnataka government.

The person, who asked not to be named, said if Apple did go ahead with plans to begin assembling the iPhone, it was likely to do so initially at a plant being set up by its Taiwanese manufacturing partner Wistron Corp at Peenya on the outskirts of the tech hub of Bengaluru, Karnataka.

Apple was not immediately reachable for comment.

Cupertino, California-based Apple, is keen to assemble its phones in India, one of the world's fastest growing smartphone markets.

Apple representatives met with federal and state government officials in India last week, as it is lobbying hard for a raft of tax and sourcing concessions from India, before it begins to assemble iPhones in the country.

Following the meetings, Apple said it appreciated the open and constructive dialogue it held with Indian officials, around the expansion of its local operations in the country.

Any final decision around manufacturing in India however, is likely to still be contingent on the government's willingness to concede ground on the concessions sought by the company.

Last month, Information Technology Minister Ravi Shankar Prasad said India would consider Apple's request for incentives to invest in the country with an "open mind."

On its part, the government of Karnataka in the same statement also added that it was "committed to new initiatives in any sector for manufacturing and will provide a conducive environment for investment."

Apple Inc just last week indicated to the government that it is ready with a blueprint to begin manufacturing iPhones in India, but wants fiscal concessions, including customs duty waiver on import of components.

Apple executives made a detailed presentation on its road map for setting up a manufacturing unit in India to an inter-ministerial group headed by Department of Industrial Policy and Promotion Secretary Ramesh Abhishek, officials privy to the development said.

The presentation was made by senior executives of the company, Priya Balasubramanian. It cited the country’s business friendly ecosystem for keenness to start local manufacturing. With sales tapering in the US and China, Apple is eyeing India—the fastest growing smartphone market in the world—and looking to set up a local manufacturing unit to cut costs. It, however, does not manufacture devices on its own and rather does it through contract manufacturers.

With inputs from Reuters

Loading...




also see

science