Apple’s removed a significant barrier to opening its stores in India as the country’s Department of Industrial Policy and Promotion (DIPP) recommended exempting the firm from a state ruling that requires foreign companies to source at least 30 percent of their goods from domestic suppliers for their branded retail stores, as per The Times of India.
Cutting-edge tech deserves an exemption
After witnessing a detailed presentation Apple gave to the committee on April 19, 2016, the agency has recommended exempting Apple from the local sourcing norms because its products are “cutting edge technology and state-of-the-art” so local sourcing is not possible, according to sources familiar with the matter.
The DIPP would soon send the proposal for final approval to the Finance Ministry. The move is thought to pave the way for Apple to open single-brand retail stores in India, a 1.25 billion people country.
India is fast becoming a very important market for Apple.
Still, Tim Cook & Co. face an uphill battle there due to high iPhone prices and the fact that many Android handsets from local vendors retail for less than $100, with good enough phones selling for as low as $50.
After slashing older iPhones, moving to sell refurbished devices and working with local retailers and distributors on expanding its local footprint, Apple was able to revert the trend. In its most recent quarter, for example, Indian iPhone sales grew fifty percent.
Source: The Times of India