Apple’s plans to open own-brand Apple Stores in India may finally be gaining momentum, with a new report claiming that the Indian government is likely to give the company a two or three year exemption to local sourcing laws in order to establish its retail outlets in the country.
India’s laws state that foreign companies must procure 30 percent of components locally — which currently does not happen in Apple’s case since it produces the majority of its products in China.
Discussions to give Apple a grace period to establish local sourcing are said to have already started between India’s finance ministry and the department of industrial policy and promotion (DIPP). “It is only fair to insist on some local production and 2-3 years is a reasonable period,” one unnamed source told Times of India.
In the meantime it seems that Apple is embracing the idea of doing more work in India, including buying chargers made in the country, investing $25 million in a new office complex in India, as well as opening a brand new local office dedicated to Apple Maps. Between them, these projects will create thousands of new jobs in India. There have also been reports that iPhone manufacturers including Foxconn and Pegatron may open factories in India, which should make Apple’s adherence to local sourcing laws a bit more straightforward.
We guess Tim Cook’s recent visit to India had the desired effect, after all!
Source: Times of India