Apple, other phone makers seek export incentives and tariff cuts to grow India production

“Smartphone makers in India are calling for export credits on devices and tariff cuts on machinery imports as part of measures they say will make Asia’s third-biggest economy a global smartphone manufacturing hub,” Sankalp Phartiyal reports for Reuters.
“The Indian Cellular and Electronics Association (ICEA), whose members include some of the industry’s biggest names including Apple Inc, made the proposals in a 174-page document reviewed by Reuters and submitted to the government ahead of its annual budget announcement next week,” Phartiyal reports. “‘As the country is [close to achieving] saturation point… without an export take off manufacturing growth cannot be sustained and accelerated,”’ the ICEA said in the document… The government’s ‘Make in India’ campaign beginning 2014 and gradual tax increases on imports of mobile phone components have spurred the creation of more than 260 manufacturing units in the country and over 600,000 jobs, ICEA said.”
“In its document, ICEA proposed the government raise the export credit received on the value of mobile phone shipments to 8 percent from 4 percent. It also called for the introduction of a 5 percent export credit on services such as mobile apps,” Phartiyal reports. “Other proposals from the body – which also counts Huawei Technologies Co Ltd, Oppo and Foxconn among its members – include lower import taxes on capital goods such as machinery and ensuring manufacturers have access to low-cost capital.”
Read more in the full article here.
MacDailyNews Take: It’s a fine line India’s government has to walk between fostering and hindering growth in local manufacturing that should evolve as conditions mature.
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