Apple will start assembling iPhones in India within a month, says Karnataka IT Minister Kharge

Image: Reuters

Apple Inc will be ready to start assembling high-end iPhones in the city in less than a month to boost its chances of gaining a foothold in the fast growing Indian market, Karnataka IT Minister Priyank Kharge said on Thursday.

“In less than a month, we will have something out – Apple will start assembling and making its high-end iPhones at its plant in the city. Taiwanese contract manufacturer Wistron Corp will help Apple in doing so,” he told PTI in Bengaluru.

Kharge said making iPhones in India would help Apple lower prices, which will help it gain a foothold in the fast growing Indian market.

“Assembling and making of iPhones in Bengaluru will boost Apple’s chances of gaining a foothold in the fast growing Indian market because it will allow the company to lower prices,” he said.

Karnataka government has been in talks with the Centre for strengthening the ecosystem even as Apple is negotiating with it for its next level of production in India, he said.

Apple wants to bring its component manufacturers to India to make parts and export finished phones and is seeking tax concessions on import of key components. However the Indian government has rejected most of the demands of the US company.

Kharge said if the Centre was keen on taking on China, it should not give special treatment to Apple alone, but to other players, including Samsung and Lenovo, if they are desirous of opening a manufacturing units in India, especially Karnataka.

“My position with the central government has been don’t give special treatment to Apple alone, but treat other players equally. Open the entire ecosystem for high-end manufacturing of electronics if you really want to compete with China and Taiwan,” he said.

Kharge said government should also give companies, including Apple, certain timelines, subsidies and incentives to create a level-playing field for them.

“The government should give companies a timeline, say in 10 years they should be able to manufacture 100 percent of phones and its components by procuring them from the local market. Such a timeline should be given because we don’t have that environment now,” he said.

“The government should also give companies subsidies and incentives to create a level-playing field for them to strengthen the Indian ecosystem,” Kharge said.

Asked about the Stayzilla case, whose co-founder Yogendra Vasupal was arrested for alleged non-payment of dues filed by a Chennai based advertisement agency, Kharge said it should be a learning curve for startups to work under the parameters of the Indian legal system.

Vasupal was arrested on 15 March.

Publish date: March 31, 2017 9:54 am| Modified date: March 31, 2017 9:54 am

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Cisco announces its first Made in India router

Reaffirming its commitment to investing further in the country, global networking giant Cisco on Thursday unveiled its first ‘Made in India’ router which can be used by small and medium businesses (SMBs) across multiple industries.

Unveiled in the presence of IT and Electronics Minister Ravi Shankar Prasad, the router, which will cost less than $1,500, is one of the most popular products in Cisco’s core switching portfolio worldwide which is fundamental to network connectivity.

“I would like to compliment the Cisco team that I had requested them to take the initiative of Make in India and today is a great product which will help internet in office space and other places which is a clear mark of digitising India,” Prasad told the gathering.

The global networking giant which is now focused on making a big foray into Cloud, Internet of Things (IoT) and cyber security, recently launched its manufacturing operations in Pune and announced it would build Nagpur as Smart City with its Next-Gen solutions.

“I compliment John Chambers (Cisco Executive Chairman) and the entire team present here. They have established a big premises in Pune. Good luck and keep it up,” the minister added.

According to industry analysts, there are nearly 23 billion connected devices and the number is expected to double to over 50 billion by 2020 and Cisco is prepared to help governments and enterprises achieve this goal.

To achieve this, providing a secured ecosystem — from hardware to software — to the customers is the key.

“India is an incredible country for Cisco as it represents 360 degree value – a great growth opportunity, world class talent, and now an integral part of our global supply chain,” said John Kern, Senior Vice President, Supply Chain Operations, and India Executive Sponsor, Cisco.

IANS

Publish date: March 23, 2017 7:48 pm| Modified date: March 23, 2017 7:48 pm

Apple team to meet government panel on 25 January to discuss its plans for manufacturing in India

  08 Jan 2017 , 12:18

A team of the US-based iPhone maker Apple will meet a group of senior officials from ministries, including IT and finance, on 25 January to discuss its demands for setting up a manufacturing unit in the country.

Officials from departments of commerce, industrial policy and promotion (DIPP), revenue, environment and forest, electronics and information technology (DeITY) will take part in the deliberations.

In a communication to the government, the Cupertino-based technology major has asked for several tax and other incentives, including long-term duty exemptions, to enter the manufacturing sector in India.

(Also Read: Apple demands for tax concessions and sops could adversely affect Make In India campaign)

However, the sources said the technology major should set up the manufacturing unit in India without seeking additional support.

As many as 42 companies are making mobile phones in India, including Chinese firm Huawei and Xiaomi, and no firm has approached the government for any additional incentives.

Currently, the government provides support by way of benefits under the Modified Special Incentive Package Scheme (MSIPS) to boost electronic manufacturing.

The scheme offers financial incentives to offset disability and attract investments in the electronics hardware segment. It also gives subsidy for investments in special economic zones, among other benefits.

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 of 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.

The company sells its products through Apple-owned retail stores in countries like China, Germany, the US, the UK and France, among others. It has no wholly-owned store in India and sells its products through distributors such as Redington and Ingram Micro.

The government has announced incentives to promote electronic manufacturing in India and reduce the import bill.

PTI

Apple’s made-in-India iPhone: This is what makes Bengaluru so special

By Anirudh Regidi /  30 Dec 2016 , 13:25

The news that Apple has decided to start manufacturing phones not just in India, but specifically Bengaluru, is interesting, to say the least. It begs the question, why Bengaluru? Why not Hyderabad or Noida or even Chennai?

The answer to that question is neither easy to give, nor is it definitive; all I have to offer are pointers.

Startup heaven

Bengaluru is the only city from India and the second city from Asia to make it to the Global Startup Ecosystem Ranking. This is a list compiled by Compass and ranks cities on their ability to produce and support great startups. In fact, judging by the report, Bengaluru only ranks behind Berlin in terms of growth in the startup space and is the seventh largest investment destination in the world!

Image: Huffington Post

Other Indian cities haven’t even made it to the list.

The report also explains that Bengaluru has some of the youngest tech entrepreneurs in the world. In fact, the average age of an engineer in the city is much less than that of Silicon Valley (25 vs 36).

Nasscom’s 2016 Startup Report also states that Bengaluru, Mumbai and Delhi-NCR account for 70 percent of startups in the country. India is also home to the third largest startup ecosystem in the world, and this is led by Bengaluru, with Delhi-NCR close on its heels and Mumbai a distant third.

Image: Nasscom

Bengaluru is also reported to be the “biggest investment destination”, accounting for over 40 percent of overall funding in the startup space in India. If you’re looking to start something new, Bengaluru is certainly the place to be.

As one entrepreneur explains, “I find this space more exciting. I find the energy and the sheer number of people starting up here are far more”, when comparing Bengaluru’s startup scene to Silicon Valley’s.

Government support

The Nasscom report goes on to state that the Karnataka government is “leading the wave of Indian startup ecosystem.” That’s saying something.

Image: Nasscom

Karnataka’s permanent secretary of e-governance has been quoted as saying, “Silicon Valley will be Bangalored!” With statements like that, and the amount of work the state government is putting in to back startups and the necessary ecosystem, the government’s commitment is in no doubt.

There’s a dedicated startup cell to implement the government’s startup policy, government grants and a great deal of supporting infrastructure.

Where else will Apple go?

Considering what these reports suggest, where else will Apple go? The company’s already investing in a massive, 40,000 square foot complex in Bengaluru for the development of apps; the engineers are there, the money is there and the manufacturing is coming up.

Image: Nasscom

Microsoft, Amazon and IBM are also investing heavily in Bengaluru. In fact, data centres are already being set up there. It’s not without reason that Bengaluru is being called the Silicon Valley of India.

If you’re an engineer fresh out of college, would you rather be in Bengaluru or Chennai/Hyderabad? For most, the choice is obvious.

From that perspective, there’s no reason for Apple to want to go anywhere else.