Apple will have to sell locally sourced goods in order to set up its own single-brand stores in India.
A senior official in the Indian government told Reuters that Apple‘s offering in India would have to include at least 30% locally sourced goods if it wished to set up its own stores in the country.
The news comes just after Apple‘s Chief Executive Tim Cook made a four-day trip to India, during which he met with India‘s Prime Minister Narendra Modi.
According to Reuters, sources have said that Apple hopes to open three stores in the country by 2017.
Under currently legislation, foreign retailers selling “state of the art” or “cutting-edge technology” are supposedly exempt from the 30% rule. According to the government official, however, Apple‘s products were not considered to be a part of this category.
“They did ask for a waiver but didn‘t provide any material on record to justify it. The decision was taken only after a thorough examination of their application.”
Apple currently sells its products in India via ecommerce and distributors. India is one of the world‘s fastest growing markets for smart-phones, whereas markets in China, where Apple has most of its parts made, and the US are slowing down.
