Its chief executive Tim Cook was in India to drum up support for its plans to open its own stores as well as making it presence even stronger in the country, which is likely to serve as one of its biggest markets for years to come. An anonymous source talking to the Times of India claims that the government might be willing to waive the “30 percent rule” in Apple’s favor for two to three years in order to give Apple the chance to comply with the law and sell locally sourced goods by the time that grace period is over.
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However, a couple of months ago we noted that, as a “cutting-edge technology” company, Apple might be given a waiver. The policies state that at least 30% of manufacturing has to be within India before they’re allowed to open a branded store.
Last year, the government had carved out a window for foreign companies for setting up shops country wide via single-brand retail route.
According to the sources, the finance ministry is of the view that an exemption of the local sourcing norms only for Apple would send wrong signals to other investors, which have already detailed out their India-specific rollout plans.
“When you offer such a large market to a foreign supplier, it’s only fair that you expect him to create some jobs in India”, said finance minister Arun Jaitley. The finance ministry had previously rejected DIPP committee’s recommendation to relax the rule for Apple. “Otherwise, we will become a complete nation of traders only”. Unsurprisingly, that’s exactly how much time India is looking at for Apple’s temporary waiver. Foxconn and Apple are already planning to start a manufacturing line in India that will supply components to iDevices. “Five years may be too long”, said a source, who did not wish to be identified.
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Apple sees India as holding huge potential for iOS growth. Currently, Apple products are sold via third-party retailers.
