Apple removes barriers to store opening India approves proposal to exempt local procurement rules

Apple India

According to foreign media reports, Indonesian Finance Minister Arun Jaitley has approved a proposal that clarifies the circumstances under which Apple can open a store in India without first complying with local parts procurement rules, according to foreign media reports.

The proposal, approved by Jatri, gives India's Ministry of Electronics and Information Technology the power to determine whether a single-brand retailer is a cutting-edge technology provider, according to people familiar with the matter. If it is identified as a provider of cutting-edge technology, Apple can enjoy a three-year exemption without having to comply with the mandatory requirement to purchase 30 per cent of components in India. Most of Apple's products are made in China.

Apple can now reapply to open retail stores in India and has a good chance of immunity. People familiar with the matter said India's newly approved proposal would dispel doubts about Apple's previous application because it was difficult for the Indian finance ministry to decide whether Apple's products were state-of-the-art technology.

Apple CEO Tim Cook (Tim Cook) is trying to capitalize on growth opportunities in India. India has a population of 1.3 billion and a gross domestic product of $2 trillion. Despite the rapid increase in smartphone use in India, Apple's market share in India lags far behind its rivals who sell cheap devices. For many domestic and foreign companies looking to tap the potential of the Indian market, India's Byzantine bureaucracy and complex regulations remain a challenge.

Apple has been using its flagship stores in New York, Tokyo and Shanghai to boost sales, but in India it can only sell products through partners such as the mobile phone chain Redington India.

Under Prime Minister Narendra Modi's "made in India" (Make in India) plan, Indian officials are keen to encourage companies to make products in India. In June, a senior Indian government official said the government had asked Apple to provide a time limit for the eventual local production of some products.

A spokesman for India's Ministry of Finance, D. S. Malik, had no comment. Apple India has yet to comment.