Apple Must Pledge India Plants Before Stores Get Approval

India is seeking a commitment from Apple Inc. to bring manufacturing facilities to the country before the government will approve the iPhone maker’s request to open its own retail stores, according to a senior government official with direct knowledge of the matter.

The government may loosen existing policies that require local sourcing for companies that want to open stores if Apple announces a timeframe for some domestic manufacturing, said the official, asking not to be identified because the matter is private. The country’s Finance and Commerce Ministries are in talks about adjusting current policies to allow Apple to make a revised application, even if those facilities aren’t complete, said the person. Apple wouldn’t have to own the plant itself, but could work with a manufacturing partner like Foxconn Technology Group as it does now in China.