India drops restrictive manufacturing clauses, opening the door to Apple

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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.

Stephen Warwick
News Editor

Stephen Warwick has written about Apple for five years at iMore and previously elsewhere. He covers all of iMore's latest breaking news regarding all of Apple's products and services, both hardware and software. Stephen has interviewed industry experts in a range of fields including finance, litigation, security, and more. He also specializes in curating and reviewing audio hardware and has experience beyond journalism in sound engineering, production, and design. Before becoming a writer Stephen studied Ancient History at University and also worked at Apple for more than two years. Stephen is also a host on the iMore show, a weekly podcast recorded live that discusses the latest in breaking Apple news, as well as featuring fun trivia about all things Apple. Follow him on Twitter @stephenwarwick9