This strategic move aims to tap Indian Prime Minister, Narendra Modi’s ‘Make in India’ incentive which states that foreign retailers will have to manufacture 30% of goods sold in stores locally. Local manufacturing could boost Apple’s market share in the world’s second largest smartphone market, in which it has just a 2% market share.
In a strategic move designed to capitalise Indian Prime Minister Narendra Modi’s pet project of promoting manufacturing in the country through his ‘Make in India’ initiative, Apple Inc. has stated it is in talks with the Indian government to explore the possibility of manufacturing locally, said the Wall Street Journal in a report.
India is the world’s second largest smartphone market in the world going by users.
Apple is potentially trying to make use of the Indian government exemption, which ends in June, which requires that foreign retailers should manufacture a minimum of 30% of the goods sold in their stores. The move is designed to boost local industry.
The WSJ has reported that Apple in a letter to the Indian government has outlined manufacturing plans and has requested financial incentives.
Representatives from the Indian government were not immediately available for comment.
A spokesman for Apple did not immediately respond to comments.
For Apple, local manufacturing is likely to help it open more retail stores in the country. Apple’s flagship iphone accounts for less than 2% of Indian smartphones sales.
Foxconn, also known as Hon Hai Precision Industry Co Ltd has a manufacturing facility in southern India which makes iPads and iPhones.