Apple lobbies for more incentives

Apple Inc is angling to participate in a new scheme to boost India's exports of computer products, part of what government and industry sources say are plans to bring iPad tablet manufacturing to the South Asian country.

India launched a $6.7-billion plan to boost smartphone exports last year, as Prime Minister Narendra Modi stepped up efforts to promote electronics manufacturing and create jobs.

Apple, which has steadily raised production of iPhones in India to lessen its dependence on Chinese manufacturing, took part in that scheme via its contract manufacturers.

Now the government is preparing to unveil another incentive to drive local manufacturing of IT products, including tablets, laptops and servers, three sources involved in the drafting of the plan said.

The new performancelinked incentive (PLI) scheme, which offers cashback to manufacturers for exports, will have a budget of up to Rs 7,000 crore ($964.5 million) over five years, the sources said. It's expected to be launched by the end of February.

Apple, along with others, is lobbying for a bigger budgetary outlay of Rs 20,000 crore before that plan is finalised, as India doesn't yet have the scale or the supply chain for making IT products and competes with duty-free imports of tech products, two of the sources said.

Apple's push comes at a time its iPhone supplier Wistron is just restarting operations at a southern Indian plant after angry workers went on a rampage last year. Apple is yet to take the Taiwan manufacturer off of probation.

New Delhi is also planning another PLI, at a budget of roughly Rs 5,000 crore over five years, to boost domestic manufacturing of wearable devices such as smartwatches, the sources said, adding the plan could be announced within two months.

Apple assembles a bulk of its iPads in China, but is fast diversifying production to markets such as India and Vietnam.