Latest News | Several Chinese Suppliers to Apple to Soon Seek Govt Approval to Form JVs in India

New Delhi, Jan. 25 (PTI) Several Chinese suppliers to iPhone maker Apple have set up joint ventures with domestic firms here as the California-based company seeks to develop local capabilities. It plans to seek government approval “immediately” to establish a facility in , according to sources.

These suppliers require approval as the government’s Foreign Direct Investment (FDI) guidelines require businesses in neighboring countries to seek government consent to invest.

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Sources said the government has granted certain preliminary approvals to some Chinese suppliers.

Sources say Apple has some concerns with its China-based suppliers, and they have been discussing the matter privately with the government.

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The company has also privately shared a list of its suppliers, many of which the government has had no trouble with and is likely to get approved, one of the sources said. Make in India initiative.

“Apple will promote them and develop applications soon. These suppliers will have local partners,” they added.

An email inquiry to Apple regarding this issue remained unanswered.

Commerce and Industry Minister Piyush Goyal said on Monday that iPhone makers are considering expanding manufacturing in India as the business environment encourages global companies to enter the country.

He said Apple already does about 5-7% of its manufacturing in India. “If I’m not mistaken, they are targeting his 25% of manufacturing.

In November 2022, Telecommunications and IT Minister Ashwini Vaishnaw said India’s largest unit to manufacture Apple iPhones will be built in Hosur near Bengaluru, employing about 60,000 people.

The company’s iPhones are made by Indian electronics giants such as Foxconn, Wistron and Pegatron, but the majority of high-end components are still sourced from China.

Electronics and IT Secretary Alkesh Kumar also said that Apple not only manufactures mobile phones for India, but also exports US$1 billion worth of mobile phones as of December.

In April 2020, the government required prior approval for foreign investment from countries bordering India to curb opportunistic takeovers of domestic companies after the COVID pandemic.

Countries bordering India are China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar and Afghanistan. According to that decision, his FDI proposals from these countries will require government approval for investment in India in any sector. PTI RR PRS CS

(This is an unedited article auto-generated from a syndicated news feed. LatestLY staff may not have changed or edited the content body)

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