Apple's Make in India demands in January 2017
Apple is the world's
largest information technology company by revenue, the world's largest technology company by total assets, and the manufacturer.
In November 2014, in addition to being the largest
publicly traded corporation in the world by market capitalization, Apple became the first U.S. company to be valued at
over US$700
billion. The company employs
115,000 permanent full-time employees as of July 2015 and maintains 478 retail stores in seventeen countries as of March 2016.It operates
the online Apple Store and iTunes Store, the latter of which is the world's
largest music retailer. There are over one billion actively used Apple products
worldwide as of March 2016.
In a short space of time, the obsolete and obstructive
frameworks of the past have been dismantled and replaced with a transparent and
user-friendly system that is helping drive investment, foster innovation, develop
skills, protect Internet Protocol (IP) and build best-in-class manufacturing
infrastructure. The most striking indicator of progress is the unprecedented
opening up of key sectors – including Railways, Defense, Insurance and Medical
Devices – to dramatically higher levels of Foreign Direct Investment.
Apple
is trying to negotiate with the Indian government over the terms and conditions
under which it will contribute to the Make in India campaign by doing some
manufacturing or assembly within the country. There are two different sets of
requests here, one set which should be granted--not just for Apple but for
everyone--and another set which should be rejected. Those that should be
granted are the relaxations of the rules on who may do what, where, when and
how. Those that should be rejected are any form of partiality or exemptions in
taxation or other financial arrangements. That is, for Apple as well as for
everyone else, we should have the freest marketplace possible along with just
the one set of fiscal demands upon all.
Apple takes pride in the design language of its
products and any distraction is a plain distraction; even if that means
government mandated printing of product information. As the Cupertino,
California-based company aims to set up its manufacturing unit in India, it has
raised a number of requests to the government seeking various concessions. One
of the recent requests made by the company seeks relaxation of the labeling
laws so that the aesthetic value of Apple products is not depleted when it
reaches consumers.Someone, somewhere, might take that to be an important point.
But it's doubtful that anyone is doing so seriously. Take that to be a
negotiating point rather than anything else:
Currently, Apple's products are manufactured in six countries, including Korea,
Japan and the US.Earlier,
the finance ministry in May had rejected relaxing the 30 per cent domestic
sourcing norms, as sought by the iPhone and iPad maker as a pre-condition for
bringing in FDI to set up single-brand retail stores in the country. The
company had sought exemption on the ground that it makes state-of-the-art and
cutting-edge technology products for which local sourcing is not possible.The
government had also turned down the firm's proposal to import refurbished
phones and sell them in India.
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