Roger Fingas
Apple is seeking financial handouts from the Indian government before setting up a manufacturing unit in the country, according to a new report.
The incentives are connected to the Department of Revenue and the Department of Electronics and Information Technology, India's Economic Times said.
"They are doing their due diligence from quite some time," an official told the publication. "The Department of Industrial Policy and Promotion will write to both the departments regarding this communication for their views."
Apple and its manufacturing partner(s) could receive help under the Modified Special Incentive Package Scheme, which among other things can provide subsidies if a company sets up shop in one of India's "Special Economic Zones" — areas with lowered government regulations designed to lure foreign firms.
Since Apple currently operates just one factory of its own, located in Ireland, Indian manufacturing would presumably be handled by Foxconn. That company was already reportedly interested in setting up an Apple-oriented factory, possibly including iPhones.
Establishing manufacturing could be a prerequisite to opening local Apple stores. In August India's finance minister ratified a proposal that could let single-brand retailers like Apple be exempt from local sourcing rules for three years, so long as they provide "cutting-edge" technology. At the end of those three years, though, Apple would have to have substantial local production in place.
Andrew Orr
Amber Neely
William Gallagher
Christine McKee
AppleInsider Staff
19 Comments
Sounds inline with norm. Brings jobs in India. This puts pressure on Chinese bureaucracy not give hard time to Apple.
Apple really wants financial incentives? Wouldn't being able to sell more product to Indian consumers at near-typical Apple margins be enough incentive? It doesn't sound quite right IMHO for the richest company on the planet to expect common Indian taxpayers to cover some of the plant costs by way of reducing Apple's taxes that enable Apple to sell there.
I don't like seeing big & relatively rich American corporations wrangle tax incentives from US states to build plants or add jobs/equipment. Amazon for instance doesn't need any financial assistance to build warehouses that they financially benefit from nor do big pharmaceuticals or health providers moving or adding headquarters. Yet State lawmakers who generally are relatively well-off themselves stumble all over themselves to pass these giveaways. For what reason should a wealthy corporation receive tax benefits, to make themselves even wealthier? They're going to build plants and add offices anyway if the business is there. That this occurs in poor countries with very high levels of poverty is worse.
India made laws requiring a certain percentage of products be Indian-manufactured in order to push companies to invest and create jobs in return for access to their consumers. If they don't think India is important enough to invest in then they don't get to sell there. Big incentive for access to the 2nd largest country by population. But to then water-down the benefits by giving companies tax breaks to do so?? Seems far too typical that tax laws benefit the ones making the laws to the detriment of those of lesser influence.
I fully expect some number of thumbs-down, but Apple doesn't need handouts no matter how much you like them. Nor do most other corporations. If you disagree than have the courage to explain why, but TBH I doubt anyone will. Anonymous downvotes don't require anything.
The trend has been for the rich to get ever richer, in many cases offering zero value to anyone including the owner of the wealth. At some point the anger of the have-nots will overflow. For someone like Mr. Trump to make so many mistakes and yet still be in the running for the Presidency is proof of that.
"Since Apple currently operates just one factory of its own, located in Ireland..." Doesn't Apple own the Mac Pro factory in the US ? If not, then who owns it ?