India raises duties on imported cellphones to 20%, which may hurt Apple
Bangalore — India is raising custom duties on imported cellphones to 20% from 15%, a bid to promote domestic manufacturing that may hurt Apple’s ability to compete in the world’s fastest-growing smartphone market. The iPhone maker has been looking to expand its presence in India and has negotiated with the government for lower tariffs on certain components. But the latest duties — part of a budget unveiled on Thursday — show the country moving in the opposite direction. Prime Minister Narendra Modi has been pushing companies to establish more manufacturing operations through his Make in India programme. Higher duties may incentivise Apple to expand its operations in the country, along with rivals such as Samsung Electronics, Xiaomi and Oppo Electronics. Apple has also been lobbying the government to set up its own retail stores in India. The country now requires phone makers to source 30% of their product domestically to set up single-brand retail stores, and assembling in the count...
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