‘iPhones assembly in Bengaluru in less than a month’

Apple has been seeking tax concessions on import of key components.

March 30, 2017 05:40 pm | Updated 05:44 pm IST - Bengaluru

Apple Inc will be ready to start asembling high-end iPhones in the city in less than a month to boost its chances of gaining a foothold in the fast growing Indian market,Karnataka IT Minister Priyank Kharge said on Thursday.

“In less than a month, we will have something out — Apple will start assembling and making its high-end iPhones at its plant in the city. Taiwanese contract manufacturer Wistron Corp will help Apple in doing so,” he told PTI.

“Assembling and making of iPhones in Bengaluru will boost Apple’s chances of gaining a foothold in the fast growing Indian market because it will allow the company to lower prices,” he said.

Karnataka government has been in talks with the Centre for strengthening the ecosystem even as Apple is negotiating with it for its next level of production in India, he said.

Apple wants to bring its component manufacturers to India to make parts and export finished phones and is seeking tax concessions on import of key components. However the Indian government has rejected most of the demands of the US company.

Mr. Kharge said if the Centre was keen on taking on China, it should not give special treatment to Apple alone, but to other players, including Samsung and Lenova, if they are desirous of opening a manufacturing units in India, especially Karnataka.

“My position with the central government has been don’t give special treatment to Apple alone, but treat other players equally. Open the entire eco-system for high-end manufacturing of electoronics if you really want to compete with China and Taiwan,” he said.

Mr. Kharge said government should also give companies, including Apple, certain timelines, subsidies and incentives to create a level-playing field for them.

Asked about the Stayzilla case, whose co-founder Yogendra Vasupal was arrested for alleged non-payment of dues filed by a Chennai based advertisement agency, Mr. Kharge said it should be a learning curve for startups to work under the parameters of the Indian legal system.

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