The Indian government is likely to permit Apple to open its own retail stores in India. For two to three years, Apple could be made exempt from the usual requirement for foreign firms to source at least 30% of their goods from India before setting up single-brand stores locally.
Sources have told Times of India that this idea has been floated in discussions between India’s finance ministry and department of industry policy and promotion, or DIPP. The government is now said to be trying to figure out an arrangement under which Apple could begin adhering to the 30% sourcing rule once the company has broadened its presence in the South Asian country.
Apple appears to have made its own preparations, having told the government that it has began purchasing some chargers in India. An anonymous source told Times of India: “It is only fair to insist on some local production and two-three years is a reasonable period. Five years may be too long”.
Apple CEO Tim Cook is clearly enthusiastic about the company’s potential in India, having recently hinted that more affordable iPhones and the mobile payments service Apple Pay could reach the country.
