he facilities announced for Bengaluru and Hyderabad are only the beginning of whats

to come, says Cook.

Apple is looking at India as an investment destination, in addition to pushing the sales of its products
in the country.
In his first ever interaction with an Indian media organisation, Tim Cook, CEO of Apple, said the
facilities announced for Bengaluru and Hyderabad were only the beginning of whats to come.
We have thought through many areas (of investment) and we will move ahead in all these areas.
What we have announced in Hyderabad and Bengaluru are just a couple of initial things, theres
more coming. We are committed to India, Mr. Cook said in his first interaction with an Indian
media organization.
Asked if Apple would consider manufacturing iPhones here, Mr. Cook said, We are looking at India
as a partner across (segments), not just for any one area. Manufacturing is something we will
logically look at.
On the controversy over pre-owned phones, he said he would urge the Centre to come to an
agreement. If you think about automobiles, brands like Lexus and Mercedes have been selling
certified pre-owned cars. We have this programme in the U.S. and in most parts of the world. When
they are sold, they are sold with warranty, just like a new product. We would never sell a product that
we didnt think was right, he said.
Mr. Cook said he was not chasing market share in India but wanted to partner with telecom
operators to enhance the quality of services. We are in India for the next thousand years. Our
horizon is very long. We are focussed on best, not most. So it doesnt bother me that we dont have
top market share, he said.
In the US and other markets, Apple gets a significant part of its sales through partnerships with
telecom operators. In India, it has not been able to push through with this model. During his visit,
Cook is meeting a number of operators to see if Apple can work with telecom companies to improve
network quality. I see a great technical collaboration between Apple and main carriers in India and
to make sure the iPhone works incredible on those networks. The feedback I have thus far is very
positive on that. We push really hard, in some ways they think we are crazy, but they love it as well
that someone is pushing them hard to work together to solve the most difficult problem.
When asked if India could be as big as China for Apple some day, the Apple chief said that all the
ingredients are in place for India to grow exponentially. I see a lot of positive things happen in the
country and more will happen. From GDP point of view there is no doubt in my mind that India will
set new records. I can feel it will happen, Cook said.
Full interview:
You have been in India for two days now, meeting industrialists, Bollywood stars
including Shah Rukh Khan. How were these meetings and what is the learning so far?

Its been a great learning experience for me. What I wanted to do was to learn about people, about
culture, about how business is done, what things are changing and what are the catalysts for the
change. In particular, I wanted to understand the telecom networks in the country, especially with
4G coming. I met with network operators and I am very optimistic that 4G is now coming, after a
long wait. It can be a huge change agent. I have met some of the industrialists of India and that gave
me a great deal of perspective. Apple has long served the creative markets. Thats how we started
by focusing on film-makers and artists. So I spent some time with film-making groups and its
unbelievable. I am picking up various things but the thing that trumps all of those is the warmth of
the people. This is very unique. You quickly feel like you are part of a community and you have made
lifelong friends.
Lets step back a little. There are stories of how Steve Jobs came to India when he was a
teen and found it intense and disturbing and then never looked back. Could you give
us an insight into how Jobs viewed India?
Steves conversation about India with me was very different from what you are saying. He, at that
point in life, was seeking inspiration and purpose. He came to India for that. I can tell you that it
guided him for many, many years thereafter. He got a lot out of India when he was here. So my
discussion with him does not reflect the view (of being indifferent). He clearly loved Indian culture
and he loved the food.
But it seems that Apples view of India in the past has been one of indifference and that
India was sort of a blind spot for the company. Why has it taken over four decades for
a CEO to visit India?
I dont know the history before Steves come-back. I start after he came back. At the beginning it was
about survival and initially it was about growing the Macintosh. That took several years working
through iMac, iBooks... during that period, we were all focused on that, to get the company out of
soup. Bringing iPod gave the company an added mission - about bringing music to everyone and
serving artists. Thereafter, we had the iPhone and we started looking at those countries which we
could be focusing on; countries which had the network that can unleash the power of the iPhone. In
the beginning it was EDGE and then it was 3G and 4G. While we have been in India for a while, this
seems like a great time to scale up when the priorities of the country and the company are in line;
and I dont mean only in terms of it being a market; yes, we would like to sell our products, but we
see India as a significant source of talent. Not just for ourselves but also for the ecosystem. We have
hundreds and thousands of developers in India but that number should be in millions. If we do the
right thing in accelerating this and help them become entrepreneurs and then the selling can be done
through the app store. India is also home to content creation, back to Apples reason for being. Its all
coming together now. We have thought through many areas and we will move ahead in all these
areas. What we have announced in Hyderabad and Bengaluru are just a couple of initial things,
theres more coming. We are committed to India.
Most of the billion people in India may not have heard about Apple. A few million
would have heard and seen Apple products and only the minority few, who can afford
it, would have actually used an Apple device. How would you as the CEO, explain what
Apple is to this Indian audience?

Apple is about making the best products, we only create products that enrich peoples lives and in
doing that we change the world in a positive way. That, in a simple way, is what Apple is about. Think
of our products as tools to learn, teach; they empower people to do things they could not do
otherwise. Thats our reason for being and thats what drives us.
India is a difficult market and it has different characteristics in terms of consumers
purchasing power, retail distribution network, telecom networks... How different will
be your approach here to other markets?
We are learning. There are things that are clearly different. But I would say theres more things
similar than different. The tendency is to magnify the difference and not look for similarity. The truth
is that everyone wants the best product, not everyone may be able to grab it, but they want it. So
when you start to look at it like that, you have a different perspective. We are patient people. We are
not in India for a week or a quarter. We are in India for the next thousand years. Our horizon is very
long. We are focused on best, not most. So it doesnt bother me that we dont have top market share.
I dont have the goal to have the top share next week or next quarter.
How do you see the regulatory environment especially with the Indian authorities
disallowing you to bring in certified pre-owned phones? There is also the concern with
the geospatial bill which could have an impact on your mapping services?
The people I have met with I have found them to be very open and they want to do the right things.
They are open to hearing alternate points of view. I have a lot of faith that are our ideas would be
listened to and we would get a fair hearing. On the certified pre-owned issue in particular, if you
think about automobiles - brands like Lexus and Mercedes have been selling certified pre-owned
cars. We have this programme in the U.S.and in most parts of the world. When they are sold they are
sold with warranty, just like a new product. We would never sell a product that we didnt think was
right. We think it is good for people. Its not the only solution but one part of puzzle. We would like
to offer it and we hope we are able to articulate that clearly and we hope we can get an agreement. On
maps, I am not sure about the objective there but I found the local authorities are very helpful and
agile and keen to get foreign investment. I think if there is some issue they would be able to work
through it.
Indian Prime Ministers favourite project is Make-in-India and in that context there
are reports that you are in talks with Foxconn to enable some form of manufacturing
here. Could you confirm?
It is something we will look over time. On this particular trip we are focusing on the maps centre,
which we have opened today, that will ramp up to 4,000 employees over the next few quarters, and
then the app accelerator in Bengaluru, which is about encouraging developers and entrepreneurs.
We are looking at India as a partner across, not just for any one area. Manufacturing is something
logically we will look at.
What excites you and what worries you the most?
I am excited that I see more technology that help human kind and you begin to see the early stages of
technology helping in major ways in health and in education its being taken to another level. I am

excited about the number of ways technology can intersect in everyones life. If we can help people
look better, live longer, have more enjoyment, get them to be productive, you can make a major shift
in the world. So thats something I love. In terms of losing sleep, the world is witnessing tense times
across different parts so thats worrisome. In the long-term, I am most optimistic. These kinds of
things are speed bumps not permanent.
You spoke about 4G networks but some of the other tech firms like Microsoft and
Google are trying to do their bit in speeding up network roll-outs. Do you see Apple
participating in similar manner?
I have met a couple of operators and I am greatly encouraged to see really great investments and
deep engineering thats going on. I am really optimistic that by the end of year we are going to feel
dramatically different with 4G. The best approach for India will be to bet on the operators. They
really have a strong desire and scale, so I am very optimistic.
Apple so far has not been able to get a deal for bundling with any Indian telecom
operator. Do you see that changing?
Telco partnerships are very important because it is the combination of incredible devices and
incredible networks, that gives customers the ability to do unbelievable things. That marriage is
important. But it goes back to the regulation question. Unlike in India, carriers in the US or Japan or
China do sell phones. They may not be dominant players but they do sell. Here not so much because
of the way the tax system works. You know it better than I do. What I sense is great technical
collaboration between Apple and main carriers in India and to make sure the iPhone works
incredible on those networks. The feedback I have thus far is very positive on that. We push really
hard, in some ways they think we are crazy, but they love it as well that someone is pushing them
hard to work together to solve the most difficult problem. Because it takes a handshake, its not that
the network is independent of whats on itand we cannot develop products without knowledge of
the network.
Bollywood and cricket are two big crowd-pullers. On a personal note, do you watch
cricket and Hindi movies and do you see a partnership with the two from a business
point of view?
I will watch cricket in the future, I have not sat through an entire game yet but I will. On the
Bollywood side, we serve that community. When I toured some studios yesterday, I saw Macs
everywhere. We give them tools that enable them to create content. I have seen the movies and am
amazed at the content that comes out of India. What we can do best is that we can make sure that
even more people see it. We have now have a billion activated devices in the world and we can
highlight the content because everybody loves to see great content. So will we do partnerships? We
already have partnerships. Will we do more? Perhaps! Theres a strong bond there and all
relationships start with the bond.
Clearly, you are very bullish on Indias future potential. Can India become China for
Apple?

India could, in all respects. But India shouldnt try to be like anyone but itself, because India is
fantastic. I think the multi-cultural nature of it, the warmth of its people this is an advantage that is
probably not well understood to the exterior world. I see a lot of positive things happen in the
country and more will happen. From the GDP point of view there is no doubt in my mind that India
will set new records. I can feel it will happen, all the ingredients are there

Apple Inc. CEO Tim Cooks visit to India this month marks a definite change of course for the
technology giant. Unlike its peers, till now it hasnt worried much about making or selling its wares
in the country and the course correction is timely. Mr. Cooks visit, the first to India by an Apple
CEO in the companys 40-year history, comes barely a month after its first quarterly revenue fall in
13 years. The long period of heady sales growth, making Apple the worlds most valuable company by
market capitalisation, seems to have ended. Even as critics debate whether this is due to the
innovations pipeline at Apple drying up or a global slowdown, the Cupertino-based company is now
finding that customers in its two main markets the U.S. and China are not as eager as before for
its premium phones and tablets. In the last six months, the Apple share has lost about a fifth of its
value. Last month, maverick billionaire-investor Carl Icahn sold his stake in Apple, citing concerns
about Chinas attitude, the trigger being Beijings decision to shut down Apple iTunes movies and
iBooks stores. This is far more serious than it may appear, as Apple offers not just hardware but a
whole marketplace. It is clearly time for Apple to nurture a big, promising market. India is that
market.
Mr. Cook has taken the task of engaging with India seriously. He has ticked all the boxes including
visiting the Siddhivinayak temple, meeting Bollywood stars, watching an IPL cricket match, and
calling on the Prime Minister. But he would know that India can be no match for China in the
scheme of things for Apple immediately. True, India proved to be a rare high-growth region for the
company in the last quarter. But that growth came from a very small base. Not only is China a key
manufacturing base for Apple, it also accounts for about a fourth of its sales. As Mr. Cook pointed
out, India is now where China was seven to 10 years ago. It is poised to become the second-largest
smartphone market in the world but its buyers are extremely price-sensitive. Apple is premium.
There is little doubt amongst analysts that there is immense potential for Apple in India in the long
run. But till it gets there, Apple would want to see how much of the market it can tap for its products
and its marketplace. Its plan to sell pre-owned phones, which was overruled by the government
recently, was an attempt in this direction. Two announcements made by Apple during Mr. Cooks
visit regarding the opening of its first development centre in India and the establishment of a
design and development accelerator in Bengaluru show how Apple is now looking at India not only
as a market. But the big news that the Centre would have liked to hear Apple manufacturing in
India has proved to be elusive. For now.

pple CEO Tim Cook will visit India later this week and is likely to meet Prime Minister Narendra
Modi, as the iPhone maker seeks to cash in on the huge potential in the worlds second largest
smartphone market.
Mr. Cook is expected to discuss matters pertaining to manufacturing in India and the potential of the
Indian technology market, according to sources.
However, Apple declined to comment on his schedule when contacted.
The Apple CEOs visit comes at a crucial time when the U.S.-based firm is focusing on new growth
markets like India after posting its first-ever decline in iPhone sales.
In an interview earlier this month, Mr. Cook had said Apple sees a huge market potential for its
products in India and that it is really putting energy in the country.
Apple has also sent in a proposal to the Indian government for selling refurbished phones in India.
However, no official call has been made on the matter.
Addressing analysts in a conference call, Mr. Cook had said that India presents a really great
opportunity but slow networks and the informal retail structure across the country is holding the
company back from realising its full potential.
While its sales in China, its second-largest market after the U.S., fell 11 per cent, in India iPhone sales
were up 56 per cent from a year ago.
But I view India as where China was maybe seven to ten years ago. From that point of view, and I
think theres a really great opportunity there, he had said.
According to research firm Counterpoint, Indian smartphone market grew 23 per cent in the first
quarter of 2016, surpassing the U.S. to become the second largest country in terms of users.
This is despite the global sales remaining flat globally in the same time period.
Samsung led the India smartphone tally with 29 per cent share. Other top players included
Micromax (17 per cent share), Intex (10 per cent), Lenovo (8 per cent), Reliance Jios Lyf (7 per cent)
and Karbonn (5 per cent).
According to the report, Apple in India recorded a stellar 62 per cent growth in the first quarter from
the year-ago period, though on a lower base.
India is a big market for Apples other products as well, including the iPad and iPod.

The Indian chief executive of a leading global telecom service provider has said it was difficult for
foreign companies to do business in the country due to slow pace of government clearances.
Yes, it is difficult to do business in India... thats the general perception I think of foreign companies
and that is not just in telecom, Vodafone India Chief Executive Officer & Managing Director Marten
Pieters said while speaking at the Economist India Summit in New Delhi.
Mr. Pieters, however, added that the process for doing business in India can be made easier by just
removing a few impediments.
Vodafone, the worlds second largest telecom company, has taxation issues with Indian government.
Slapped with a Rs. 20,000 crore retrospective capital gains tax after it acquired the telecom assets of
an Indian company in 2007, Vodafone has earlier maintained that it will continue with the ongoing
international arbitration to resolve the dispute.
We note the finance ministers announcement that existing cases arising from the 2012
retrospective tax law should follow the lawful process in which they are currently being adjudicated,
the company had said in a statement after Finance Minister Arun Jaitleys maiden budget speech.
Vodafone will, therefore, continue the process of international arbitration initiated under the IndiaNetherlands Bilateral Investment Treaty, the statement added.
Mr. Pierters also said the telecom industry in India is in a mess. The telecom industry, if you look at
it from international perspective, is a mess in India ... And it seems to come from this concept which
has been developed in the past that the more competition, the better, he said.

Improve ease of doing business

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There is a mismatch between the graduates that we are producing and the real skills
required for employment and jobs.
The new government has already taken a series of progressive policy measures aimed at improving
the business climate. While investments are key, for new projects to come on-stream demand revival
is paramount. But capacity utilisation and profitability still remain at low ebb as consumer
discretionary spending is muted even in a period of low inflation. This is a big challenge for the
Finance Minister to introduce suitable prescriptions that would encourage spending and promote
private investments. To start with, he can broaden the tax base as only three per cent of the
population pay taxes, that is, only 3.5 crore people out of 125 crore besides reducing the tax burden
on existing tax payers.
However, the fact remains that to boost GDP, manufacturing has to take the lead. The Make In India
programme was announced to prop up the flagging manufacturing sector. But, despite over a year
since it was announced, no real headway is visible yet.
This is simply because investment in manufacturing is still not viable in India despite government
efforts like moving towards digitisation, simplification of procedures, single-window clearance and
other such steps.
The positive impact of digitisation is yet to be reflected in indirect taxes. Taxpayers still face
harassment from tax officials.
There are too many regulations that are still coming in the way for which there is a need for
alignment of rules and regulations namely, land, environment and others where both State and
Central laws apply.
Till this happens, it is important that more investments, particularly government spending in
infrastructure, continue that would not only provide impetus to demand for goods but also
employment opportunities.
The government will stick to its plan to meet fiscal deficit target but it should not be done through
cutbacks on capital expenditure as it is already falling well short of its disinvestment targets.
While improvement in physical infrastructure is vital one should not lose focus on the countrys
social fabric. With rising literacy, peoples aspirations are also higher. But skills required for presentday manufacturing, which is modern and technology intensive, are different.
There is a mismatch between the graduates that we are producing and the real skills required for
employment and jobs.
Businesses have agreed to make Corporate Social Responsibility (CSR) expenditure towards
betterment of society in conjunction with companys operations and growth.
But current tax treatment does not deem it to be incurred for business purpose and thus not allowed
for deduction, which should be immediately rectified.

I hope Mr. Jaitleys upcoming budget will not only showcase the overriding priorities of demand
revival and infrastructure development but also set milestones and time targets for all action to be
taken to improve the ease of doing business in the country and help in economic revival

India moves up in ease of doing business ranking

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Improving Indias ease of doing business ranking has been a focus area of the Narendra Modi government since May
2014.
TOPICS
economy, business and finance
business (general)
economy (general)

World Bank official lauds efforts of Modi government; 'It took four months in 2005 to
start a business in India, but it takes only 29 days now'
India improved its position from last years 134 to 130 in the World Bank Doing Business 2016
ranking, which was released on Tuesday.
Last years report ranked India at 140, but this years report features the recalculated 2015 rankings,
in which India comes at 134, computed according to a new methodology. The WB Doing Business
reports, started in 2002, review business regulations and their enforcement across 189 countries.
Focus area

Improving Indias ease of doing business ranking has been a focus area of the Narendra Modi
government since May 2014, and its efforts came in for praise by Augusto Lopez-Claros, Director of
the WB Global Indicators Group, which brings out the report.
My expectationis that if this process continues, if it is sustained, and the authorities show the
degree of determination which has been in evidence in the last year, then we could see substantial
improvements in the coming year, he said, briefing journalists. India also improved its distance to
the frontier, a measure of a countrys absolute performance.
Among South Asian economies, India made the biggest improvement in business regulation,
increasing its distance to frontier score by 2 points and moving up in the ease of doing business
ranking from 134 to 130. India ranks in the top 10 in Protecting Minority Investors (8), as its law
grants minority shareholders strong protection from conflicts of interest and provides extensive
rights to shareholders in major corporate governance, the report said.
The improvement in two indicators, starting a business and getting electricity, pushed India up the
ladder, according to the report. Now, companies can get connected to the grid and get on with their
business, 14 days sooner than before, the report said, based on the recently simplified procedures in
Mumbai and Delhi. The number of days it takes to start a new business has gone up marginally from
last year, from 28.4 to 29 this year, but the report has taken note of other measures in the last year
that made starting a business easier. The report commended the legislative changes that eliminated
the minimum capital requirement and the requirement to obtain a certificate to start business
operations.
Several other initiatives to simplify the start-up process were still ongoing on June 1, 2015, the cutoff date for this years data collection, the report said. These include developing a single application
form for new firms and introducing online registration for tax identification numbers. Mr. LopezClaros said India would need to further reduce the number of days it takes to start a new business. It
is still the case that in India, it takes 29 days to get a business started Its a lot less than it used to
be, which is good, but its certainly quite a bit higher than the global average There are now 132
countries where it takes less than 20 days to get a business started, India is not one of them So, we
want to move the country in the direction of increasingly being part of this set of high-performing
countries, he said, naming construction permit and enforcement of contracts as two indicators that
have scope for improvement in the immediate future. I think that what I want to emphasise here is
not that there are bottlenecks, which, of course, we understand we see a concerted effort on the
part of the government to do something about the business environment, he said.