After iPhones, India eyes MacBook production, may boost incentive scheme

NEW DELHI: After the success of Iphone manufacturing in India, government prepares to sweeten deal to kickstart production of coveted MacBook and iPad in the country, seeks to expand manufacturing-linked incentive (PLI) program base for hardware IT up nearly Rs 20,000 compared to currently spending Rs 7,350 crore without much response from the industry.
Top sources in the IT ministry say the government wants Apple’s manufacturing ecosystem to grow by leaps and bounds in the country at a time when the US electronics giant is considering a China plus strategy when it comes to global product procurement. bridge.
“We had a taste of success with iPhone production when Apple was all the top manufacturers – Foxconn, Wistron and Pegatron – currently produces billions of dollars worth of smartphones in the country. The next step for us is production MacBook and other products like iPad in India,” the sources said TOI.
The Ministry of Information and Communications, which is the focal point for promoting domestic electronics production, has submitted a proposal to strengthen this program and the matter is currently in the hands of the finance ministry and a number of other relevant ministries.
While the previous plan, approved by the Union Cabinet in February 2021, promised incentive support of 1-4% over a period of 4 years, the new plan wants to increase this to the average 5%. Unlike smartphones, where the government has imposed a 20% tax on imports, there are no restrictions on laptops as this category falls under ITA-1, allowing imports at a rate tax is zero.
“We felt the previous program was not enough to address the disability that companies would face if they were to manufacture in India. Therefore, with an enhanced incentive scheme and larger fund funding, the new program will certainly boost investment firms and also made in Indiasource said.
Apple has been cautious about making products other than iPhones in India as the company tries to balance it with China, which is not only its largest manufacturing base but also an equally strong sales market.
In addition, the company feels at a disadvantage because it does not have a strong domestic supply base, as it is not easy to bring component manufacturers from China to India after rising tensions between the two countries.
While companies are pushing for the government to relax checks allowing Chinese investment in India, licensing and approval still takes time as the Center does not want to give control to entities from neighboring country.
“Joint venture is one route we are looking at, provided that the Indian entities have a say and a control,” the source said.
The government feels that getting Apple and other top sellers like HP and Dell to expand their Indian sourcing will be crucial to achieving the size and status of a ‘manufacturing hub’. Global’.
“These are large companies that need to serve markets around the world. With the ecosystem slowly being built in India following the PLI plans, we are confident that an enhanced and more user-friendly plan will result in IT hardware,” a source said.
However, companies are also pointing to a lack of demand in the global market as well as a hiring freeze at key corporations such as IT companies. “How can one expand in such situations?” an official said, adding that there is also a recession brewing in the West.
Suggested schema target segments include laptops, tablets, PCs, and all-in-one servers. This plan is expected to benefit 5 major global companies and 10 domestic champions in the field of IT hardware manufacturing.


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