Apple May soon Enter India with Single-Brand Retail Stores

BENGALURU: After months of delay, Apple Inc may soon enter the Indian market with its debutant single-brand retail stores. This latest move from the iPhone, iPad, and Mac maker came after the Indian government recently overhauled its local sourcing norms; as compiled by the Business Insider Indian Bureau and Economic Times.

Previously, Apple had knocked on the doors of Indian government several times, appealing to open their single-brand retail stores in the country. In the wake of recent tweaks made by the government in its regulations, foreign players with the “state of the art technology” will be exempted from the mandatory local sourcing norms in the single brand retail sector for up to three years. “The policy is in the public domain for anyone to access. However, a call has been made to the company. Apple now has to inform us if they want to enter India under the new norms," a senior government official informed. As per the sources, Apple that is looking substantially to acquire a share of the smartphone segment does not have to submit a new application. 

After the completion of the three-year exemption period, the foreign players will be given a five-year period to comply with the 30 percent mandatory domestic sourcing. This move from the government is potentially to create job opportunities and promote growth in the Micro, Small and Medium Enterprises (MSME’s). After the completion of the five-year period, the foreign players will have to comply with the norm on an annual basis.

In the year 2012, the government had allowed 100 percent of Foreign Direct Investment (FDI) in single brand retail. In the year 2015-2016 the country grew from about 30 percent to 40 billion in FDI.

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