Iphone Se 2020 Home ButtonSource: iMore

What you need to know

  • Apple's opportunities for manufacturing in India just got a big boost.
  • That's because the government has dropped contentious clauses from its manufacturing policy.
  • It is also in talks with a third Apple partner, Pegatron, about a relocation to the country.

The government in India has removed several contentious clauses from its manufacturing policy, paving the way for Apple to do more business in the country.

As reported by The Economic Times:

The government has dropped contentious clauses including the evaluation of plant and machinery to be brought from China and South Korea, which had been opposed mainly by Apple, paving the way for the iPhone maker and others like Samsung, Foxconn, Oppo, Vivo, and Flextronics to make a larger play in local production using the production-linked incentive (PLI) scheme.

One official told the outlet that a committee had met Friday, deciding to remove clauses including one that evaluated plant and machinery brought into India at just 40% of its value. Other agreed changes might mean "manufacturing could shift to India in a big way."

Apple was previously concerned over clauses, particularly the aforementioned valuation clause, as it begins to move production to India's shores. Other changes include removing various caps and a clause that said the Indian government would only pay out promised incentives if it had the money to do so.

A scheme in India is looking to attract manufacturing investment by paying out incentives of between 4-6% percent over five years, as long as manufacturers meet certain production requirements.

A report earlier this month suggested that Apple hopes to shift 20% of its manufacturing business to India, and that rounds of talks with officials were taking place. Apple is reportedly seeking to make around $40 billion worth of smartphones in the country.