India eases rules on local sourcing, paves way for country's first Apple Stores

The Indian government on Monday announced loosened policies towards local sourcing by foreign retailers, likely setting the stage for Apple launching its first stores in the country.

Foreign companies running single-brand stores now have a three-year grace period before they have to meet local sourcing quotas, Bloomberg reported on Monday. If a foreign business can show it's selling state-of-the-art technology, that grace period can be extended by another five years.

The government's Finance Ministry recently declined to give Apple an exception to the old sourcing rules, prompting Commerce and Industry Minister Nirmala Sitharaman to begin talks with her Finance colleagues. That appears to have led to compromises to accommodate Apple — earlier in June, Bloomberg said that the government was willing to change regulations if it could get a solid timeframe on when local manufacturing might happen.

Apple's main assembly partner, Foxconn, is believed to be planning an Apple-focused factory for India, but even once a deal is signed it could take 18 months for the facility to be finished and start operations.

With the new rules, Apple will have to re-apply for permission to launch stores, Sitharaman told the press earlier today.

14 Comments

jbdragon 2312 comments · 10 Years

About 8 years ago

I still don't think it's worth it for Apple to get into that market. A Max 8 years before Apple would have to go along with the same old sourcing rules. I don't think it's worth it to get into that market. Maybe Satellite stores like how Apple is in Best Buy stores here in the U.S. That's the most I think Apple should do in that country and that may be even to much. There's so many other issues Apple would have to deal with also.

beltsbear 315 comments · 15 Years

jbdragon said:

I still don't think it's worth it for Apple to get into that market. A Max 8 years before Apple would have to go along with the same old sourcing rules. I don't think it's worth it to get into that market. Maybe Satellite stores like how Apple is in Best Buy stores here in the U.S. That's the most I think Apple should do in that country and that may be even to much. There's so many other issues Apple would have to deal with also.

As long as India can make phones well another source always helps.

leavingthebigg 1291 comments · 11 Years

I am looking for the story I read earlier today about this. I think after someone resigned, this new rule was passed.

dick applebaum 12525 comments · 17 Years

jbdragon said:

I still don't think it's worth it for Apple to get into that market. A Max 8 years before Apple would have to go along with the same old sourcing rules. I don't think it's worth it to get into that market. Maybe Satellite stores like how Apple is in Best Buy stores here in the U.S. That's the most I think Apple should do in that country and that may be even to much. There's so many other issues Apple would have to deal with also.

8 years is a long time ... The thing about emerging markets, is that they emerge/change!

Also, this could be an entree for other deals.

Say, if Apple were to setup an iDevice repair/refurbishing facility in India -- could that open the Indian market to high-quality (but lower cost) refurbished iDevices, and help build the Indian infrastructure at the same time.