NEW DELHI: Apple's bid to import certified second-hand iPhones into India is facing stiff opposition from local manufacturers, who say any go ahead by the government will defeat the purpose of 'Make in India' and may open doors to dumping of all kinds of electronics, including scrap.
Experts add that if the government indeed gives a go ahead, it may not be able to restrict imports to just second hand, or pre-owned, refurbished Apple iPhones, but would need to expand it to phones from other brands and second hand laptops and desktop computers, among other products, as well for reasons of parity.
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"When the government is creating Make in India to reduce imports, and a lot of mobile manufacturers are coming to the country, how can we have imports of refurbished phones by any brand, not just Apple," questioned Ravinder Zutshi, chairman of Mobile and Communications Council. The council falls under the Consumer Electronics and Appliances Manufacturers Association (CEAMA), which represents electronic manufacturers in India.
"We fully oppose such a move," he added.
The Narendra Modi-led government, which has taken decisive steps to spur local manufacturing since it assumed office in May 2014, by raising the cost of importing handsets and peripherals, faces a tightrope walk given its vocal claims to support plans by Apple - a huge global brand - to deepen presence in India. But it also can't be seen undermining its own ambitious 'Make in India' initiative.
Executives at two top Indian handset makers, who are investing to expand their production, also opposed allowing sale of imported certified second hand phones, saying it would defeat the purpose of steps taken to boost local manufacturing. They didn't want to be named.
The Indian Cellular Association, which represents mobile phone makers in the country, backed exports of refurbished phones from the country, irrespective of the brand, but was silent on import and local sale of such phones.
"Repair and refurbishing chain can create a great employment opportunity here," said Pankaj Mohindroo, president at ICA.
Cupertino-based Apple has sought permission from the government to import second hand iPhones for sale in India, a country where its sales are doubling on-year and where it plans to bring its iconic retail stores too. The ministry of environment and forests is yet to take a decision on Apple's request, having turned it down once before last year.
Industry experts point out to that a major concern would be import of scrap under the garb of refurbished, which may have ecological implications. This means the government would need to clearly define refurbished. Currently, it refers to reselling returned phones due to technical faults or incorrect delivery.
"India has strong anti-dumping laws, so they (government) would be careful not to let a Pandora's Box open up...It won't be an easy decision to make because it goes against Make in India," said Hitendra Chaturvedi, founder of GreenDust, a refurbished goods retailer.
India typically is a prolific levier of anti-dumping duty, imposed on imports priced lower than the local market price, which hits the local manufacturers.
Source :timesofindia.indiatimes.com
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