Apple Inc. (NASDAQ:AAPL) Will ‘Make In India,’ But With Relaxed Labelling Rules

December 30, 2016 - By Ruchi Gupta   ·   0 Comments

Apple Inc. (NASDAQ:AAPL) recently asked the Government of India to give relaxation as far as the labelling rules are concerned. Apple urged the government to relax the rules which demand product-related information to be printed directly on the devices. The relaxation sought by the company is to reduce the cluttering on device, thereby ensuring Apple’s minimalist architecture. Apple’s intention to manufacture in India is clear, but this is one of the few relaxations that the company has sought from the government there.

The Indian premier, Narendra Modi, during his earlier visit to the U.S., had asked Apple to “Make In India,” which means that he urged the CEO to set up factoring for manufacturing in the country. Tim Cook, the CEO of Apple, had said that India is a big market for Apple products.

India considering Apple’s request

Apple forwarded the request for relaxation in rules to Department of Industrial Policy and Promotion (DIPP) in India. The DIPP has forwarded this request to Department of Revenue and Department of Electronics and Information Technology (DeITY).

India considering Apple’s request

As of now, there are six countries where Apple manufactures its products, with China being the most productive country.

Apple wants to keep the product appeal intact

Apple’s product appeal comes from its distinctive design and minimalist architecture. By printing the entire product information onto the design, the surface would become cluttered. The laws in India, however, require the companies to print such product details on the product itself.

Apart from this relaxation, the company has also asked for tax rebates from the finance ministry in the country. The laws in India provide subsidies for investing and setting up industries in SEZs or special economic zones, as defined by the country’s government.

Initially, the finance ministry in India had rejected Apple’s plea for establishing wholly owned outlets that sought for immunity from 30% local sourcing, which is a mandatory norm there.

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By Ruchi Gupta

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