This archive report was first published on 10 October 2019.
India's bid to become a global electronics manufacturing hub has gained momentum with the introduction of new tax legislation that lowers taxes in the manufacturing sector.
The move aims to make India more appealing to both local and international manufacturers, including Apple, which has already started sourcing battery packs from a local plant for iPhones.
According to Communication Minister Ravi Shankar Prasad, the tax cuts will attract players like Apple, Foxconn, and Flextronics planning to scale production in India.
“We have redone the entire architecture of taxation law as far as manufacturing is concerned. As of now, this corporate tax cut in itself is massive,” Prasad told The Economic Times.
India is looking to replace China as the ideal manufacturing destination for electronics, with the country eyeing Apple Inc. in particular. The request came after Apple started sourcing battery packs from a local plant for iPhones.
“Apple reportedly is going to open its biggest state-of-the-art shop in Mumbai, and Samsung is withdrawing from China,” Prasad said.
