Apple urges Indian government to revise tax rules that may slow its growth: Report
New Delhi: Apple has urged the Indian government to revise parts of its income tax law that could slow down its expansion in the country, as reported by news agency Reuters.
The company wants changes that would ensure it is not taxed for owning high-end iPhone manufacturing machines that it provides to its contract manufacturers in India.
The push comes as the tech giant looks to shift a larger share of its production away from China and expand its manufacturing footprint in India.
While China still accounts for 75% of global iPhone shipments, India’s share has grown rapidly, quadrupling to 25% since 2022, according to Counterpoint Research. Apple’s iPhone market share in India has also doubled to 8% during the same period.
Apple potentially faces billions of dollars in additional taxes if it changes its business practices without convincing New Delhi to change a 1961 law covering foreign ownership of equipment used in India, added the report.
Apple executives have held meetings with Indian authorities to discuss possible changes to this law. “Contract manufacturers cannot put up money beyond a point. If the legacy law is changed, it will become easy for Apple to expand. India can become more competitive globally,” Reuters quoted an industry insider as saying.
A senior government official has acknowledged the ongoing discussions but is cautious about setting a precedent that could limit its taxing rights. “It's a tough call," said the official, who highlighted that Apple's increased investments are equally important
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
K'taka remains central to Aequs' strategy, says min Patil amid row over firm's investment in TN
Bengaluru (PTI): Karnataka Commerce and Industries Minister M B Patil on Monday asserted that Aequs continues to expand in the state and that its proposed investment in neighbouring Tamil Nadu was a business decision aimed at diversification, not a shift away from Karnataka.
Reacting to criticism on social media over reports that the Karnataka-based firm had signed a major investment deal in Tamil Nadu's Krishnagiri district for setting up a specialised aerospace and defense manufacturing cluster, he said the state government was fully aware of the company's plans and remained confident about its long-term commitment to Karnataka.
"While we welcome every major investment in India, would like to clarify a few points," Patil said in a post on 'X'.
Aequs was significantly expanding its footprint within Karnataka, including a Rs 3,000 crore investment in Kolar for electronics manufacturing.
"Its recently approved Rs 1,500 crore ECMS project will also be grounded in the state. Karnataka remains central to its long-term strategy," he said.
Patil added that the government had prior knowledge of the TN proposal.
The government was already informed and aware that the TN investment is a business decision aimed at geographic diversification and de-risking operations, not a shift away from Karnataka.
"Healthy competition between states strengthens India's manufacturing ecosystem," he said.
Emphasising the state's focus on high-technology sectors, Patil said, "We remain committed to deepening Karnataka's leadership in aerospace and advanced manufacturing, and our engagement with industry partners is strong and ongoing."
The Aequs Group has pledged Rs 4,000 crore to bolster Tamil Nadu's aerospace manufacturing capabilities at the SIPCOT-Shoolagiri Industrial Park in Krishnagiri district.
The group proposes to establish a specialised aerospace and defense manufacturing cluster for the production of aircraft engines, gearbox components, and precision engineering parts. This initiative is expected to provide employment to 7,000 individuals.
