The Indian government may allow Apple to open its first three retail stores in the country without any sourcing requirement for a few years.
According to the rule, any company which wants to open retail outlets in the country must produce or manufacture 30% products in the country. Since Apple’s devices are largely made in China, the tech giant doesn’t meet the requirement.
Last year, the Indian government announced to exempt retailers selling state-of-the –art goods from the rule. Following which Apple filed a fresh application with the government.
Earlier ministry of finance had rejected Department of Industrial Policy and Promotion’s (DIPP) proposal to let the Cupertino-based to open retail outlets without any hindrance.
As per sources, Apple has informed the Modi government that it has begun to buy chargers from the country, which are being exported.
“It is only fair to insist on some local production and two-three years is a reasonable period. Five years may be too long,” said the Times of India source, who did not wish to be identified.
Following the recent slump in iPhone sales, the tech giant has set its eyes on cashing in on the fastest growing smartphone industry in the world. iPhone sales had grown massively by 56% in the country during the previous quarter.
During his weeklong visit to India, Apple CEO Tim Cook stressed that the company is in the country for a thousand years. He added that the company is looking at the country through a global lens.
Though iPhone sales have just 2% market share in the country, it is set to increase massively following the recent efforts of the Cupertino firm.