Apple wants to set up stores in India but without conditions

If the Indian government does not relax 30 per cent local sourcing norm, Apple will not set up its stores in India.

India has put Apple’s fate in balance over the rule, which can be relaxed if the products involve cutting edge technology.

The iPhone maker has no plans to manufacture in India and wants an exemption from the rule, a request which was denied by the Foreign Investment Promotion Board (FIPB).

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"Apple wants a no-obligation clearance for setting up its stores, since it is not sure about manufacturing anything in the country immediately. It had plans to refurbish iPhones in India and sell it to consumers, but since the proposal has been turned down, local activity around it too is not going to happen," one of persons in the know-how told ET.

Apple CEO Tim Cook has shifted his focus to India, terming the country as a bright spot for the company. During his recent visit to India, Cook had said setting up stores in India is a key element of the vision.

Meanwhile, the basic aim behind the local sourcing norm is to create jobs in India.

Experts suggest Apple has already complied with it as the company is lining up two big investments in the country- a map development centre in Hyderabad and an app design and development accelerator in Bengaluru.

Recently, India’s Trade Minister Nirmala Sitharaman said she will speak with the finance ministry to waive the sourcing rule for Apple.
The government is likely to take a final decision soon.

Presently, Apple sells iPhones, iPads, Mac computers and Apple TV through distributors.

(Image: Reuters)