According to new U.S. President Donald J. Trump, all American companies should bring their manufacturing jobs back home, but as it is, Apple has other ideas on the table.
Cupertino has been pushing to for permission to install an iPhone manufacturing plant in India but to no vain. However, after intensive talks between the major parties involved, it appears that the whole thing is “almost a done deal”.
According to a report by The Wall Street Journal, this comment comes after a meeting between the Indian government and Apple executives, with the latter team led by VP Balasubramaniam. One thing that has been at the heart of these long and painful discussions is the disagreement between the parties involved, but from the side of the Indian government.
In order to put up a plant in India and start manufacturing iPhones from there, Apple had sought a few incentives, with the leading one being a 15-year relief from any import duties. While the Industry and IT ministries were okay with this move, the finance ministry had its issues. For starters, Apple is one of the largest tech industries in the world and missing out on the import duty revenue that could be generated wasn’t just part of the finance ministry’s plan. In addition, allowing Apple a 15-year period of tax-free imports for materials would open up a way for other smaller companies to seek the same treatment, something the ministry also wasn’t ready to do.
As it seems, the two parties may have found a way to hand Apple what it wants but at the same time prevent other smaller companies from taking advantage of the “loophole.” Apparently, the deal would see only companies that are making billion dollar investments in India allowed to exploit this advantage.
If the deal goes through, it is possible that we’ll soon be seeing Apple iPhones with a “Made in India” tag. Whether both parties could make it happen and see the 2017 iPhone 8 make history as the first ever iPhone to come with this tag is still unknown. But as it is, the progress is good and Apple should be able to start manufacturing its products in India, sooner or later.
Do you think it will be possible to have an Apple iPhone 8 that is made in India this year? Leave your views in the comments section below.
Article View Count: (42)