A few days ago, we reported that Apple was in talks with the Indian government to start iPad production in the country. The tech giant has been reported to be seeking a better deal with government incentives.
Now the Indian government has approved a billion dollar bounty proposal. The Production Incentive Plan (PLI) is aimed at the production of tablets and computing equipment.
Apple Lossless Audio CODEC (ALAC), was interested in using this incentive plan to start assembling the iPad in the Indian market. This $1,02 billion incentive plan aims to stimulate the local production and export of IT products such as laptops, tablets, personal computers and servers. It offers producers a 1% to 4% refund on additional sales of locally produced goods over four years, with 2019-2020 as the base year.
The incentives should help Apple set up iPad assembly plants in India through one of its manufacturing partners, but it won't be a year yet if that's enough. It is likely that Apple will continue to negotiate with the Indian government for a better deal.
Apple is trying to diversify its manufacturing, which is currently heavily dependent on China. The Cupertino giant first started making iPhones in India back in 2016 and has since increased manufacturing capacity in India and now also produces the iPhone 11.
