Apple seems to be very close to getting the nod from the government to set up Apple Stores in India.
Since the beginning of this year, Apple has been lobbying hard to get permission for opening Apple Stores in India. Seems like Apple has finally managed to convince the government to exempt it from the mandatory 30 percent domestic sourcing norms, paving way to the opening of Apple Stores in the country. Earlier this week, Apple gave a presentation to a DIPP panel, and as per ToI, it has managed to convince the government.
Citing a source, ToI states that Apple’s case ticked all the boxes when it comes to relaxing of the local sourcing norms. “Their products certainly meet the requirement for waiving the local sourcing clause,” the source said. The report however adds that a decision has not been taken, and for that Apple will have to wait for a few more days.
Back in November last year, the government relaxed rules on Foreign Direct Investments (FDI) in single-brand retail stores. While the policy mandates 30 percent of the goods sold to be procured locally, Apple is being exempted from the rule as it is classified as “a provider of cutting edge technology.”
Apple has promised to start locally manufacturing in the near future. But at the moment there is little the company can source from India except some chargers, which it exports to markets like China. Post Apple’s applications, the government had set up a committee to review it, which is being headed by DIPP secretary Ramesh Abhishek.
After Apple, China’s Xiaomi and LeEco too have filed similar applications with the government seeking permissions to open stores in India. But the report claims that these applications are currently on hold, and no decision is being taken at the moment.
Apart from opening Apple Stores, recent reports also claimed that Apple was planning on selling and eventually manufacturing refurbished iPhones in India. The ToI report states that Apple was asked about its plans by the committee, but it responded saying there were no concrete plans at the moment.
Apple CEO Tim Cook has gone on record to say India is highly important for its growth in the next decade. Apple Stores are not only highly profitable, but also represent how serious the company is about a certain market. In China, for example, Apple has rapidly set up more than 30 stores.
Source: bgr.in
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