In a morale booster for technology giant Apple which is seeking incentives to set up a manufacturing unit in India, the government on Wednesday said that it will consider the Cupertino-based company's request with an "open mind."
"We will very much like Apple to come and have a base in India," Information Technology Minister Ravi Shankar Prasad told reporters on Wednesday.
A team of the US-based iPhone maker Apple will next week meet a group of senior government officials in India and present them company's case for seeking tax benefits and other exemptions to set up manufacturing facilities in the country.
Apple has sought a tax benefits and other exemptions to set up an iPhone manufacturing facilities in the country and has sent a list of demands to the Indian government in this regard. The company had sought exemptions on the ground that it makes state-of-the-art and cutting-edge technology products for which local sourcing is not possible.
Among the demands made by apple is 15-year relaxation in customs duty on the import of iPhone kits, new and used capital equipment, and consumables.
The request is being considered by threee government departments- Revenue, under Ministry of Finance; Industry, under Ministry of Commerce and Industry and Ministry of Electronics and Information Technology.
Sources suggest that the government is not in favour of offering any special concessions to Apple.
Earlier this month, the Commerce ministry opposed the move to offer grant any concession to tech giant as other company is asking for concessions to set up mobile manufacturing unit in the country.
According to a report in Economic Times today, the government is reviewing its entire policy on mobile phone manufacturing as part of an effort to promote the 'Make in India' initiative which could meet some of the demands made by Apple.
The issue will be discussed next week when a team of the company meets a group of senior government officials in India to discuss the incentives.
Officials from various departments and ministries are likely to be present for the meeting in New Delhi.
At present, to boost electronic manufacturing in the country, the government provides benefits under Modified Special Incentive Package Scheme (MSIPS).
The scheme provides financial incentives to offset disability and attract investments in the electronics hardware segment. It also gives subsidy for investments in Special Economic Zones, among other benefits.
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