Apple’s plans for a string of retail stores in India hit a hurdle last month when the country’s finance minister ruled that Apple must conform to local sourcing laws in order to be granted a permit for the country. Requiring that Apple procure 30 percent of its goods locally, this seemed like it put a decisive halt to plans for Apple Stores in India.
Fortunately, it seems that cooler heads have prevailed — as part of a much larger rethink that goes way beyond Apple.
India announced new sweeping reforms on foreign direct investment on Monday, particularly related to foreign investments in pharmaceuticals and retail. Apple is being singled out in the media as one company that will benefit from a three-year relaxation period of the local sourcing policy, which can be expanded for longer if the company is able to prove its products are “state of the art.”
The new reforms come two days after India’s central bank governor Raghuram Rajan announced that he wouldn’t be available for reappointment to the post when his current role finishes in September.
Prior to having official Apple Stores in India, Apple has been forced to sell its products in the country exclusively through premium resellers operating on a franchise model. In March, however, Apple made it clear that it had ambitions to open a series of brick-and-mortar retail stores in India — including a major flagship store with a design reminiscent of the iconic Fifth Avenue Apple Store in New York.
This would suggest that Apple is following a similar strategy in India to the one it has pursued in the comparatively-populous China market, where Apple has been on an aggressive Apple Store opening spree.
Tim Cook recently paid a very busy visit to India, during which he met with many officials including the country’s prime minister. Apple has also been investing heavily in India as of late, with plans to spend $25 million on a new office complex in India, as well as a brand new local office dedicated to Apple Maps. Between them, these projects will create thousands of new jobs in India.
There has additionally been talk about Apple manufacturers including Foxconn and Pegatron opening factories in India, which should make Apple’s adherence to local sourcing laws a bit more straightforward going forward.
Is this the last of the hurdles Apple will have to deal with in India? Almost certainly not, but hopefully it means we can finally get some confirmation that official Apple Stores are definitely on the way. Given the gorgeous blend of Chinese and Californian culture that has marked the China Apple Stores, I’m excited to see what an India/Cupertino crossover will look like!
Source: Hindustan Times
