iPhone-maker Apple may start making iPhones in the Peenya industrial area near Bengaluru in partnership with Wistron, a WSJ report quoted Indian government officials as saying.
According to the report, Taiwanese contract manufacturer Wistron Corp will likely start making iPhone 6 and 6S models here in the next four to six weeks.
Apple has been seeking tax sops to lower prices of production but the issue has been stuck due to GST rollout among other issues.
WSJ’s report comes just a day after the government said it has not accepted “most of the demands” of iPhone maker, which wants to set up manufacturing unit in India.
To a question in Rajya Sabha on whether the government has accepted most of the demands of the iPhone manufacturer, Commerce and Industry Minister Nirmala Sitharaman said “No”.
Apple India has sought concessions including duty exemption on manufacturing and repair units, components, capital equipment and consumables for smartphone manufacturing and service or repair for a period of 15 years, she said in a written reply.
“Apple might have wanted MSIPS and other incentives to continue even after the introduction of the GST. It could also look at income-tax holiday in the country similar to China and Vietnam,” an industry expert told HT.
Earlier, the Tim Cook-led company had sought relaxation of local sourcing norms under the shield of ‘state-of-the-art and cutting edge’ technology providers.
A foreign brand looking to open single-brand retail stores in India is mandated to source 30% from Indian manufacturers for a minimum period of three years. The government had extended it to five years in case of Apple.
“Apple wants higher exemptions since there are not many high-end phone-component makers in India to buy from,” said a government official, who did not wish to be named. “The company will have to manufacture the components in India, and it has to meet international standards.”