Apple closer to India retail stores after government eases onerous curbs

“Apple Inc. may be closer to opening stores in India after the government eased onerous local sourcing requirements on retailers,” Saritha Rai reports for Bloomberg.

“The world’s second-most populous country on Monday announced the easing as part of a raft of measures intended to boost foreign direct investment and expand the leeway afforded multinational corporations,” Rai reports. “It loosened policies that require retailers to source at least 30 percent of their components locally before they can set up shop.”

“Under the new regime unveiled Monday, single-brand retailers have a three-year grace period in which they can operate stores, before they have to comply with the local sourcing requirement. Companies that can show they are selling state of the art or cutting edge technology can benefit from a relaxed local sourcing regime for ‘another five years,'” Rai reports. “Apple will now have to apply anew for permission to open its first stores in India, Commerce Minister Nirmala Sitharaman told reporters Monday. ”

Read more in the full article here.

MacDailyNews Take: As we’ve already remarked on Apple Retail Stores in India:

That’ll be worked out eventually. — MacDailyNews, May 24, 2016

SEE ALSO:
Indian government expected allow Apple Retail Stores without any sourcing requirement for 2-3 years – June 6, 2016
Indian government discussing waiver to permit Apple Retail Stores – May 30, 2016
Blow for Apple and Indian consumers as Indian government pushes protectionism – May 25, 2016
Blow for Apple and Indian consumers as Indian government pushes protectionism – May 25, 2016
Apple hits setback in push to open retail stores in India – May 24, 2016
Apple’s U-turn in India: From arrogance to servility – May 23, 2016
Apple finds potential new factory hub – in India – May 23, 2016
Apple’s Tim Cook samples Bollywood, cricket, in bid to woo India – May 21, 2016
India shows Apple CEO Cook the love it’s yet to give the pricey iPhone – May 20, 2016
Apple CEO Cook: ‘We are in India for the next thousand years’ – May 20, 2016
Watch Apple CEO Tim Cook at his first cricket game in India – May 19, 2016
Apple opens Maps development office in Hyderabad, India – May 19, 2016
Apple CEO Cook debuts in India – May 18, 2016
Apple to open first-of-its-kind iOS App Design and Development Accelerator in India – May 18, 2016
Tim Cook visits India: Apple to expand its Indian software development center, build local start-up accelerator program – May 17, 2016
Apple Retail Stores to open in India by end of next year – May 16, 2016
iPhone sales surge 56% in India as Apple eats into Samsung’s high-end share – May 8, 2016
Apple deprivileged as India bows to Washington D.C. consensus on mobile phone import tariffs – May 7, 2016
India rejects Apple’s plan to import and sell refurbished iPhones – May 3, 2016

6 Comments

    1. @Jambro. This is a part of larger FDI reforms, where India opened up Civil aviation (100% foreign ownership), pharmaceuticals (74-100% foreign ownership), Single-brand retail (such as Apple, IKEA etc. -100% foreign ownership), and defense (49% foreign ownership).

      1. These broader reforms have been in works for some time now, and I have an inclination to believe that when the ministry rejected Apple’s request to open retail stores, it knew that these reforms were coming soon and Apple will be able to open stores anyway, and at the same time it would not look like it made an exception for Apple)

  1. This is the additional information I saw on Reuter pertaining to this news;
    “We will inform Apple to indicate whether they would like to avail new provisions,” Rajesh Abhishek, secretary of the Department of Industrial Policy and Promotion, told a news conference.

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