Global mobile phone makers operating in India have demanded that companies such as Samsung, Huawei and Vivo that have invested top dollars in local manufacturing should get similar incentives and parity on policy, which may be given to Apple, so that a level-playing field is created for all.
Pathak said India imports iPhones worth Rs 1.8 billion, which needs to be reduced by making those phones locally. He also pointed out that concessions the government may grant should be dependent on the value addition the company does locally.
The same policy needs to apply across the board, of course. As for the duty differential, in a Goods and Services Tax (GST) regime, it would, in effect, vanish, as duties would be set-off against taxes due on imported items.
To continue with some measure of protection, more direct tax incentives to make in India makes sense, especially for the medium term. A better option would be to slash corporate tax rates, and bring about stability (and transparency) in the tax regime.
Handset makers in India must aim to be globally competitive. The exports would entitle them duty draw-back for, say, import of capital goods, and boost earnings.