India's Communications & Information Technology Minister, Ravi Shankar Prasad, has said in a statement that the country will consider Apple's proposal to manufacture its products in the country "with an open mind."
The minister said that India would "very much" like the US-based iPhone maker to set up its manufacturing base in India but, he added, that Apple has its base in China and "China is under stress."
Reports from India indicate that Shankar Prasad is ready to talk with the company if it submits a structured request. The tech giant has reportedly sought incentives from the Indian government to set up a unit in the country and a team from the company, is slated to give a presentation to senior government officials on January 25.
Officials from various government departments including the department of commerce, industrial policy and promotion (DIPP), environment and forest, revenue, and electronics and information technology (DeITY) are expected to take part in the deliberations.
The Cupertino-based technology company has asked the government for several tax breaks and other incentives, including long-term duty exemptions to manufacture its products in India. Among the 42 companies making mobile phones in India, including Chinese firm Huawei and Xiaomi, no firm has approached the government for any additional incentives.
In May 2016, India's finance ministry rejected Apple's proposal for the government to relax its 30 percent domestic sourcing rule as a pre-condition for bringing in FDI to set up single-brand retail stores in the country. Apple had sought the exemption on the ground that it makes the latest and cutting-edge technology products for which local sourcing is not possible. The government had also turned down the company's proposal to sell imported refurbished phones in India.
Apple owns retail stores in countries like China, Germany, the US, the UK, and France, among others and manufactures devices in six countries, including the US, Korea, and Japan. It has no wholly-owned store in India and sells its products through distributors such as Redington and Ingram Micro.