India is considering relaxing local sourcing norms for foreign companies that sell only their own brand, a move that is likely to encourage Apple Inc. to set up stores, people with knowledge of matter said.
According to the proposal, export of goods from a foreign company’s factory in India will be accounted as local sourcing, the people said, asking not to be identified as as the matter is not public. The time needed to meet the sourcing norms will be raised to eight years from five years. The change, piloted by the commerce and industry ministry, will be approved by the cabinet soon.
Under the current policy, a foreign company needs to purchase at least 30% of the product locally… Apple has been in talks with officials in India to enter the fastest-growing smartphone market in the world and tap a larger share as China stagnates. It has been a minor player in India, in part because of its high prices, but local manufacturing would help the Cupertino, California-based company avoid import duties of 20%.
MacDailyNews Take: And help Indian consumers to get quality Apple products instead of cheap knockoffs!