So, it was great news that tech giant Apple wanted to set up a manufacturing unit in India. But thanks to stringent laws and regulation in the country, that plan seems fraught with difficulties.
Also, it seems that the Indian government is in no mood to grant concessions to Apple which it had sought in order to move ahead.
Ever since Apple announced plans to enter India in the manufacturing sector, it has been asking for a number of concessions from the commerce and industry ministry, including a conducive ecosystem, tax benefits and easier labeling and packaging norms.
According to a Times of India report, the industry ministry seems unlikely to ease norms governing local sourcing for the manufacturing of iPhones. It believes that when no such concessions have been given to any other phone-maker, Apple should not be treated differently.
The ministry is also aware of the fact that offering incentives only to Apple could invite criticism from other companies.
Similarly, the Finance ministry is also not in favour of tax incentives as it wants to keep a firm grip on government revenues.
A group of senior officials from ministries, including commerce and finance, electronics and information technology, commerce and environment will now deliberate on the incentives sought by Apple and make the final decision.
