Apple Said to Seek Lower Taxes to Start Manufacturing in India

Apple wants India to offer tax concessions on iPhones that the company plans to manufacture in the country, according to Bloomberg. The company wrote to the industry ministry last month seeking lower import and manufacturing duties, a person with knowledge of the matter said, asking not to be identified. The concessions should continue even after the government rolls out its goods and services tax which is expected to subsume all existing tariffs, the person said.

The company is keen to kick-start operations in the world’s fastest growing phone market as growth slows in countries such as China. Apple trails rivals selling cheaper handsets in the $2 trillion Indian economy and producing devices in the country could accelerate the roll out of its iconic retail stores to capture burgeoning demand in the world’s second-most populated nation.

The company wants to start discussions with the tax department on future liability on its India earnings, and it has also sought competitive advantages compared to other economies where they are already manufacturing. While Foxconn, Apple’s main manufacturing partner, has expressed plans to assemble phones in the country for brands like China’s Xiaomi, most iPhones are put together in China. The Taiwanese company only began making its first smartphones in India in the middle of 2015.