According to the news report, Apple’s representatives, led by Priya Balasubramaniam, Vice President, iPhone operations, Ali Khanafer, Head, Government Affairs, Dheeraj Chugh, Director, iPhone operations, and Priyesh Povanna, Country Counsel, had a meeting with the Karnataka government for discussing the company’s initiatives in manufacturing.
According to MacRumors, Apple’s desire to open a manufacturing plant in India was sparked by Indian Prime Minister, Narendra Modi’s ‘Make in India’ initiative. Apple had started zooming in on the products that it is going to manufacture locally, as well as initiated bids from Indian state governments such as Gujarat, Maharashtra, Telangana and Karnataka to host a plant for the same. The Karnataka government announced that it had approved Apple’s proposal to ‘commence initial manufacturing operations’.
Media reports claim that last week, Apple representatives met federal and state government officials in India regarding various concessions including a 15-year tax holiday on import of components and equipment. The company was also seeking tax incentives, including the possibility of long-term duty exemptions.
“Apple’s intentions to manufacture in Bengaluru will foster cutting edge technology eco system and supply chain development in the state, which are critical for India to compete globally,” said Priyank Kharge, IT Minister, Karnataka.
Currently, the company assembles these devices from Foxconn Tech Group in China and sells its products in India through exclusive arrangements with chain stores such as Imagine and iStore. Once the hub is set up, Wistron will reportedly start with the manufacturing of the iPhone 8.
With Bengaluru being pronounced as the city to host the new plant in operation this year, India becomes the third country to assemble iPhones globally. But this is not Apple’s first project in Bengaluru; last year the company had announced that it is setting up a design and development accelerator in the city, to grow the iOS developer community.
