India expects global phone manufacturers to move production of their devices to the country, owing to favorable tax laws. The state introduced new tax legislation which lower taxes in its manufacturing sector.
The move aims at making the country more appealing to both local and international manufacturers like Apple.
“We have redone the entire architecture of taxation law as far as manufacturing is concerned. As of now, this corporate tax cut in itself is massive,” Prasad told The Economic Times. “mobile phones already are a success story,” he went on.
India’s Communication Minister believes that the tax cuts will attract players like Apple, Foxconn, and Flextronics planning to scale production in India.
“We are already the second biggest manufacturer of mobile phones in the world. Now, even Apple is coming in a big way, Foxconn 2 and 3 will launch base.” Prasad said.
Mr. Prasad says that India is looking to replace China as the ideal manufacturing destination for electronics. The country is especially eyeing Apple Inc, evident in the state’s request for iPhone maker to expand its manufacturing base in India. The request came after Apple started sourcing Battery packs from a local plant for iPhones.
“Apple reportedly is going to open its biggest state-of-the-art shop in Mumbai, and Samsung is withdrawing from China,” Prasad went on.
According to The Verge, Apple is open to the idea of shifting manufacturing from China to reduce its dependence. Moreover, RT reveals that Apple asked its suppliers to shift up to 30% of its production away from China.
India might likely bag the deal owing to the previous production of low-cost iPhone models as well as the new tax cuts.