The Indian government reportedly is considering tax and policy changes Apple long pushed for to assemble iPhones locally, approval which would enable it to increase output and hit the local content requirement needed to open Apple stores in the country.
Ramesh Abhishek, a top official at the Department of Industrial Policy and Promotion, said the government is studying the tax exemptions sought by Apple, Reuters reported.
Apple currently sells its products through authorised resellers.
Earlier this week Indian authorities gave China-based smartphone maker Oppo permission to open its own single-brand stores in the country. The move is a positive signal for other non domestic smartphone vendors such as Apple seeking similar approvals.
The country generally requires brands to source 30 per cent of products sold in the single-brand stores locally.
Apple implemented several moves to comply with local content requirements. It started producing iPhone SE smartphones in India in May, with output reportedly between 25,000 and 50,000 units a month.
The smartphone giant had pushed for a range of tax incentives to start local production of iPhones for nearly a year, but the Department of Revenue in March rejected Apple’s requests. The government said at the time it was reviewing its overall manufacturing policy to stimulate support for Make in India as well as attract overseas investors.
In August Apple also asked the government to offer tax breaks to its suppliers if the country aims to become a major manufacturing hub for smartphone components and iPhones.