India will consider Apple’s request for incentives to invest in the country with an “open mind”, Information Technology Minister Ravi Shankar Prasad said today.
Apple has sent a list of demands to the Indian government, seeking tax concessions and several other policy exemptions, as necessary pre-requisites before it starts production of its iPhones in India.
Prasad also said a government panel headed by the Cabinet Secretary would now clear investment proposals in the electronics sector above $1 billion, instead of them going through multiple government departments.
Prasad’s comments came after the Cabinet revamped a subsidy programme for electronics manufacturing, tightening some of its provisions following objections from the Finance Ministry.
He announced a cap of $1.5 billion on the amount of subsidy the government provided under the Modified Special Incentive Package Scheme (M-SIPS) designed to boost electronics manufacturing.
The Finance Ministry had raised concerns about the scheme because of lack of clarity about the subsidy payout, delaying a slew of investment proposals.
Apple has offered to manufacture iPhones in the country both for the domestic market as well as exports, in a potential boost for Prime Minister Narendra Modi’s “Make in India” programme to expand a domestic industrial base and create millions of jobs.
“We want to make India a big hub of electronic manufacturing,” Prasad said
By Baishakhi Dutta
