Industry can meet Apple’s local sourcing needs: IESA

The Dollar Business Bureau

The India Electronics & Semiconductor Association (IESA) said that the electronics industry in India is ready to meet the components requirement of Apple Inc. for manufacturing iPhones in India, provided the smart phone maker offers purchase commitment to domestic firms.

“If the government says fall in line, industry associations are prepared to enter into an agreement with Apple and say tell us what your wish list is, we will fulfil it in the next 3, 6, 9 and 12 months,” said MN Vidyashankar, President, IESA.

Apple has submitted a proposal to establish single brand retail outlets in India but has asked for an exemption from local sourcing norms on the grounds that the company manufactures cutting edge and state-of-the-art technology products for which domestic sourcing may not be a viable proposition.

The finance ministry had earlier declined the US-based giant’s proposal to ease the 30 percent local sourcing norms as a pre-requisite for investment to establish single-brand retail outlets in the country, but its recent moves indicate a softening on its earlier stand. The ministry has in its recent release said that the 30 percent domestic sourcing requirement can be relaxed for cutting edge technology products and shall try to dilute the local sourcing norms to ease the iPhone maker’s entry into the Indian market.

Vidyashankar reacted to the latest move by the government saying if the government makes an exemption to Apple, then every foreign company will put forth their request for relaxations which in the long run have an adverse impact on the Indian industry.

“Industry associations, after meeting all the concerned ministries, have expressed their concerns on the dilution of such norms,” he said.

“However, Apple entry is very vital for the industry as well as the country,” he added.