Apple wants to clear all confusions before opening single-brand stores in India

Even after India relaxed its local sourcing norms for companies offering ‘cutting-edge’ and ‘state-of-the-art’, Apple is thoroughly going through all rules and regulations before opening its single-brand stores in the country.

The Indian government stated the foreign single-brand retailers can comply with the controversial 30% local sourcing requirements over the first five years of operations now.

However, as per reports, Apple does not think so.

"There is a certain opaqueness regarding the rules. In addition, the company does not want to commit to complying with local sourcing requirements. It can only start manufacturing in or begin sourcing from India once it attains a certain scale of business which is difficult to estimate right now," ET quoted one of the sources as saying.

ET reported Apple wants the government to clearly define what it means by 'cutting-edge' and 'state-of-the-art' technology to avoid any sort of confusion.

Also, earlier the local sourcing condition was being altogether waived off for companies that were deemed to sell products having 'cutting-edge' and 'state-of-the-art' technology but now it has changed to three-year waiver.

After that, these firms will have to comply with the provision stipulating that 30% of the average value of goods purchased by them over the subsequent five years be procured locally.

Apple does not plan to manufacture in India as of now, but is keen to open retail stores.

"Apple ideally wants 'no conditions-attached' FDI approval from the government. It has plans to expand operations in India and invest more in the country, including manufacturing or assembling at a later stage. But it does not want to agree to any conditions, since a lot will depend on how sales actually pick up in India," ET quoted sources as saying.