Apple lobbies for larger India incentives for iPad assembly

Apple is lobbying for larger India incentives in a new incentive plan aimed to boost Indian exports of computer products, part of what government and industry sources say are plans to bring iPad assembly to the South Asian country.

The new eighth-generation iPad comes in space gray, silver, and gold finishes.
Apple’s eighth-generation iPad

Sankalp Phartiyal for Reuters:

India launched a $6.7 billion plan to boost smartphone exports last year… Apple, which has steadily raised production of iPhones in India to lessen its dependence on Chinese manufacturing, took part in that scheme via its contract manufacturers.

Now Prime Minister Narendra Modi preparing to unveil another incentive to drive local manufacturing of IT products including tablets, laptops, and servers in a continued effort to promote electronics manufacturing and create jobs.

The new performance-linked incentive (PLI) scheme, which offers cash-back to manufacturers for exports, will have a budget of up to 70 billion rupees ($964.5 million) over five years, the sources said. It’s expected to be launched by the end of February.

Apple, along with others, is lobbying for a bigger budgetary outlay of 200 billion rupees before that plan is finalised, as India doesn’t yet have the scale or the supply chain for making IT products and competes with duty-free imports of tech products, two of the sources said.

MacDailyNews Take: India would be smart to incentivize Apple to bring iPad (and other products) assembly into the country, as the products sell in the tens of millions of units per year and in the hundreds of millions of units over a five-year period.

[Thanks to MacDailyNews Readers “Fred Mertz” and “Brawndo Drinker” for the heads up.]


    1. Apple is not asking for a handout. It is pointing out that India does not have the same infrastructure (roads, power grid, water, ports, airports, trained labor force,etc.) as China. That makes it more expensive for a company the size of Apple and its prime contractors to operate in India than in China. Conversely, India has little incentive to improve its infrastructure until it has companies that require it.

      One way to break that chicken and egg cycle would be for Apple to move its operations knowing that it will lose a lot of money for years to come, which is hard to justify to investors. Another is for India to partially subsidize the move with performance-linked incentives that will only be payable if Apple brings the jobs and investment that will pay for the necessary infrastructure improvements.

      Which makes more sense?

  1. Certainly whatever smart, rational and fair deal can be struck for Apple to break free from Communist chains, so be it.

    That said, God Bless Rush Limbaugh the greatest radio announcer in HISTORY and the catalyst for the rise of conservative media that challenges the irresponsible biased media reality distortion field…

    1. There is no God for Rush Limbaugh who now inhabits the Sixth terrace of Hell (Gluttony). Soon to be joined by Ted Cruz who is now prepping for Hell right now while fellow Texans freeze.

      1. It’s amazing how you liberals act so superior in all things and yet comments like this show your true nature: Pure evil with nothing but bile and hatred inside of you. This is just another example of how well the left will “unify” the country.

        1. The Abbott without Costello, and Ted (Snidely Whiplash) Cruz blaming anyone but themselves. Texas a state run by for themselves Republicans made worse by the supporters who were conned and voted them into office….Pity is a better word.

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