Just over six months after the Government of India announced FDI reforms and the possibility emerged for seeing Apple Stores in the country, the Govt. has now taken a sort of a U-turn about the whole thing.
ETtech’s Ruchika Chitravanshi & Deepshikha Sikarwar report that the government panel has decided not to relax the 30% local sourcing norms.
The US company’s proposal to set up Apple Stores under the single brand policy has been approved without any relaxation in the sourcing conditions, two officials privy to the development said. Apple can set up single-brand retail stores in India but it will have to meet the 30% local content sourcing requirement, they said.
“Apple’s proposal is acceptable to us but we cannot make an exception for it and forego the sourcing requirement if it wants to set up its own stores here,” a senior government official said.
Tim Cook just wrapped up almost a week-long visit to India, where he spent time in Mumbai & Hyderabad, and also met the Prime Minister of India Narendra Modi and discussed plans to sell refurbished iPhones as well as the possibility to manufacture phones in the country, as part of Modi’s ‘Make in India‘ initiative.
However, looking at today’s development, it seems like Apple’s got a rocky road ahead.