Business Standard

Government working on options for duty sops sought by Apple

- PRESS TRUST OF INDIA

The government is working on certain options to accommodat­e demands related to tax and duty concession­s sought by iPhone maker Apple for setting up a manufactur­ing unit in India.

Although the finance ministry has prima facie rejected the demands of the US-based technology major, senior executives of the company met an inter-ministeria­l group recently to deliberate upon the issue.

The group discussed at length the demands of the company, sources said, adding that the government is trying to find ways through which certain support measures could be extended to the American firm.

Sources also said the company is asking for concession­s as it wants to bring in its supply chain or component makers to the country as Apple cannot source inputs locally.

The company also wants duty exemptions on the products to be bought from special economic zones (SEZs).

At present, goods exported from SEZs do not attract any duty but import duties are levied if items produced there are sold in the domestic market.

There is a possibilit­y that this demand could be met by the government as several domestic companies are also demanding for the same.

On the other hand, certain duty concession­s being sought by Apple are very difficult to meet as India is gradually becoming a manufactur­ing hub of smartphone­s.

A strong supply chain is being establishe­d in the country despite any sop or concession offered to any player. Also, no domestic or foreign manufactur­er has sought any concession from the government so far.

There is dilemma that if the government extends its support to Apple, it may weaken the strong supply chain.

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