Apple’s Chinese vendors could soon be allowed to set up manufacturing plants in India by the federal government. The transfer will be finalized if Apple assures the federal government that it has no different possibility for sourcing parts, a report by Economic Times (ET) stated.
Sources advised ET that the federal government is open to investments by Chinese entities that promote know-how and manufacturing capabilities if there aren’t any alternate options obtainable.
ET additionally added that the producers would be required to import parts if there are some issues across the vendor and no different alternate options can be found. The authorities can also ask the producers to switch the know-how to native manufacturing.
Lately, the federal government has been asking Apple to set up its manufacturing plants in India. Since the launch of the iPhone 14, the corporate has been scaling up its manufacturing capability in India, shifting from China.
The December quarter may mark Apple’s highest-ever cargo of iPhones to India at round 570,000 models in contrast with 370,000 models in 2021, in accordance to consultants.
In April 2020, the Department for Promotion of Industry and Internal Trade (DPIIT), amended the Foreign Direct Investment (FDI) guidelines to add that corporations from nations sharing a land border with India will want a previous nod from the federal government.
With these adjustments, any overseas direct funding from Bangladesh, China, Pakistan, Nepal, Myanmar, Bhutan, and Afghanistan now requires prior authorities approval, regardless of the FDI cap relevant to the sector.