Apple CEO Tim Cook is all set to visit India for the first time in seven years. Cook will be inaugurating Apple's first flagship Indian store in Mumbai on April 18. He is also expected to meet senior government officials. Ahead of the visit, the government is believed to be favourably considering an industry demand to reduce the basic customs duty on high-end phones and import duty on mobile phone components. ​

CNBC-TV18 has learnt from sources that the government is considering reducing basic Customs duty on high-end phones from 20 percent currently, and slash import duties on more components to encourage domestic manufacturing. The move could help high-end mobile phone-makers like Apple​.

The mobile phone industry has been requesting the government to reduce basic Customs duty on high-end phones from 20 percent currently to a flat rate of Rs 5,000-8,000 on phones costing over Rs 25,000-30,000. According to industry representatives, this move would help domestic production, prevent smuggling and protect legitimate traders.

While some quarters of the government have proposed a reduction in BCD and import duties on certain mobile phone components, sources in the Ministry of Finance said no such no proposal is under active consideration.

What India would want to know from Tim Cook

Apple is launching its first India store in Mumbai next Tuesday, followed by a second launch in Delhi's Select City Walk Mall on April 20. There is also a great deal of curiosity about whether Tim Cook would unveil a roadmap for manufacturing and sales during his India visit.

Sources say Indian officials would seek details from Apple officials about the extent of the company's indigenisation and urge Apple to increase local manufacturing and exports. Currently, Apple is only assembling phones in India, and officials would like to assess Apple's commitment to India post 2026-2027, when Production-Linked Incentives (PLIs) come to an end.

Indian officials are expected to urge Apple to start assembling the iPhone 14 Pro and 14 Pro Max in India. Nudging Apple to move iPad manufacturing to India would also be on the agenda when Indian officials meet Apple CEO Tim Cook.

First Published:Apr 13, 2023 1:34 PM IST