Apple is reported to be in discussions to begin iPad assembly in India. The tablet will join the iPhone models that are already being assembled in the country. The Cupertino firm is already receiving financial incentives for assembling iPhones in India and new incentives are being offered for iPad assembly there.
Apple first began seeking incentives to assemble iPhones in India back in 2016. While the government initially refused most of Apple’s requests, the iPhone maker went ahead and began producing the original iPhone SE in the country.
The Indian government did eventually provide tax concessions for the project, including the ability to bring iPhone components into the country without paying import taxes on them.
Last year, the Indian government announced a plan to reward smartphone makers for boosting production volumes in the country. The incentives are worth between 4% and 6% of the value of phones, depending on volumes.
Apple is in the midst of an effort to reduce its dependence on China as a manufacturing hub, and as recently as a few months ago a report indicated the iPad production could expand to Vietnam in 2021. A separate report claimed that a “significant” amount of iPad production could leave China.
Reuters reports that the Indian government is now preparing a similar scheme for tablets, laptops, and servers. A new performance-linked incentive (PLI) scheme, offering cash-back to manufacturers for exports, will spend up to 70 billion rupees ($964.5 million) over five years. It is expected to be launched by the end of February.
Apple is reportedly campaigning for the scheme’s value to be nearly tripled, up to 200 billion rupees. The electronics firm says the bump is necessary due to India’s lacking supply chain, requiring Apple to import most of the iPad components from China.