Amercian electronics giant Apple is expected to begin the assembly of iPhones on a trial basis in India from next month. The company is going ahead with the process despite the central government reportedly rejecting requests made by the company regarding several concessions on the tax on the import of iPhone components.
According to a report by the Economic Times, Taiwanese manufacturer Wistron, that has a contract with the Cupertino-based company, will start the assembly process at its existing facility in the industrial hub of Peenya in Bengaluru next month.
Meanwhile, the Karnataka state government has also taken up Apple’s case with the central government. A Karnataka state government official told ET that the state government was working to ensure that Apple brings its ‘entire component making ecosystem’ to the IT hub and that it begins to export iPhones from there.
Apple has been lobbying for a number of concessions from the Indian government, which includes waiving off counter availing duty (CVD) on the import of components that go into making an iPhone.
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Earlier in February, Karnataka IT department minister Priyank Kharge had said that Apple would manufacture iPhones in Bengaluru and that all the devices would be targeted at the domestic markets. However, at the time the company had been tight-lipped about the entire discussion.
But now it seems that the company is going ahead with its plans and will begin a trial run next months while pursuing its requests with the centre. The company is also expected to set up a manufacturing unit at a second location in the country.