Apple's India woes continue, government denies giving any special tax concessions

Apple may be the world’s most influential technology company, but its charm doesn’t seem to be working with the Indian government.

Despite Apple showing intentions of manufacturing its products in India, and setting up stores, the Indian government is clear that the company will have to abide by the same regulations as other overseas smartphone manufacturers.

Apple reiterated its intentions and plans to manufacture locally in India in November, asking the government for waivers and tax concessions on some policies, Reuters reports. But its long tussle continues with dim hope of success.

India’s Trade Minister Nirmala Sitharaman has said if the country agrees to any concessions, it will be applicable to all smartphone manufacturers, and not just Apple.

Last year, Apple was seeking waiver from local sourcing condition, which India requires for all overseas companies that want to set up retail stores in the country. The proposal was rejected, but the Indian government later relaxed the rules for three years for single-brand foreign investors.

According to the report, Apple has again sent a proposal to the Indian government in which it seeks a permanent waiver from local sourcing condition. The revenue department is currently reviewing Apple’s file.

Apple sees a big opportunity in India. Tim Cook paid visit to the nation for the first time as CEO of the company last year. During his visit, he met several government officials including India’s PM Narendra Modi, expressing desires to expand its business in the country.

India last year rejected Apple’s proposal to sell refurbished smartphones, one of the ways the company could have lower the price points of iPhones for the Indian market.

The vast majority of smartphones sold in India are priced under $150, with Apple’s arch rival Google CEO hoping to see the next wave of low-cost smartphones retailing for $30. Apple smartphones currently retail in India at a higher price point than they do in the United States and much of the rest of the world due to higher import taxes levied on smartphones that are not assembled in India.