Apple Will Open Up an iPhone Production Plant in India

According to Kharge, the iPhones that will be made in Bangalore will target the domestic market, boosting the supply and presence of Apple's devices in the country.

Now, it has come to light that Apple has sent an official proposal to the Karnataka government to build an iPhone manufacturing unit in the state's capital city.

Reports said the plant is being set up by Taiwanese manufacturing company Wistron Corp.

To show for all its efforts, Apple now has the regulatory green-light to set up direct stores, after the government tweaked foreign direct investment rules in June 2016.

While the manufacturing of iPhones is something that fits right into Prime Minister Modi's Make in India campaign, Apple has maintained, according to a Financial Times report, that it will begin work only if they are offered concessions.

Recently, Apple's representatives led by Priya Balasubramaniam, Vice-President iPhone operations; Ali Khanafer, Head, Government Affairs, Dheeraj Chugh Director, iPhone operations and Priyesh Povanna, Country Counsel met with Kharge for manufacturing and other collaborations.

Last year, the company shipped 2.5 million iPhones into the country.

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Glad to announce initial manufacturing operations of the world's most valued company: Apple, in Karnataka. This was seen as a prelude to Apple making iPhones in India.

Apple in terms of manufacture has demanded a 15 year tax holiday from the government to start the manufacturing process, which is still being negotiated.

However, although Apple said this week it is keen to "invest significantly" in India, it has not confirmed any plans. Gujarat, Maharasthra and Telangana too were competing for the Apple facility.

The present assembly plans are separate from Apple's discussion with the Indian government.

Later it was reported that thanks to Apple's request the government is "considering continuing the duty-free regime on import of components used in mobile phones provided they are for "higher technology" smartphones with a longer lifecycle and with the least hazardous substances".

"I feel really good about how we're doing [in India]", Apple CEO Tim Cook said on an earnings call this week after reporting record revenues for the country. It now sells its products in India through contracts with stores such as Imagine and the Reliance Digital-owned iStore.

  • Regina Walsh