Apple seeks tax exemptions in India

The US firm is considering investing in a major manufacturing facility in the country...

Apple seeks tax exemptions in India

Mark Lennihan / AP

Apple is close to a deal which will see it bring a major iPhone manufacturing facility to India as it looks to increase its market share in the state which is home to more than 1.25 billion people.

Representatives from the US firm are reported to have met Indian government officials in New Delhi yesterday.

The Wall St Journal reports that an official with direct knowledge of the matter said that it is, "almost a done deal."

The source adds that the two parties are close to a compromise on tax and tariff exemptions which have been asked for by the US firm.

"Many of the incentives sought by Apple are workable," the official commented.

A separate individual from the Indian side of the talks said that the firm is seeking a "15-year tax holiday on imports of components and equipment" - it is also reported to be looking for an exemption from custom duties on these components.

The company commands less than 5% of the country's booming smartphone market - but it is starting to take a hold of the top end.

An Apple spokesperson said that there has been a "constructive and open dialogue" between the two parties.

Smartphone shipments grew by 18% last year, that's well ahead of the global average of only 3%.