India paves way for first Apple store
NEW DELHI: Prime Minister Narendra Modi is clearing the way for Apple Inc to open its first retail store in India after repeated delays, according to people familiar with the matter.
Modi’s Cabinet on Wednesday approved a three-year exemption on local-sourcing requirements for foreign single-brand retail companies with “cutting-edge technology”, according to the people.
At the same time, the government will make it easier for companies like Apple to meet that criteria, said the people.
The moves represent the latest shift for Modi’s government, which has sent conflicting signals in recent months over Apple’s bid to set up shop in India.
Apple chief executive officer Tim Cook visited India for the first time in May as he seeks to tap the world’s fastest-growing smartphone market to counter slowing sales growth elsewhere.
India last year said it would exempt companies with “state-of-theart technology” from a requirement to source 30 per cent of components locally.
Last month, the Commerce Ministry sought to limit that exemption to three years, on top of the five years that all single-brand companies get to comply with local sourcing rules. The Finance Ministry also questioned the definition of “cuttingedge technology”, complicating Apple’s plans.
Modi’s push to clarify those procedures will pave the way for Apple to open a retail store, according to the people.
The new rules may also impact China’s Xiaomi Corp and Leshi Internet Information & Technology Corp, which have also asked for exemptions.
Apple’s market share in India is much less than Samsung Electronics Co and Micromax Informatics Ltd, which offer cheaper phones to price-conscious Indians. While Apple now sells its iPhones and iPads through franchisees as well as the retail units of India’s biggest conglomerates Tata Group and Reliance Industries Ltd, it wants its own stores to further boost sales. Bloomberg