Note: This is the third article in the series discussing the possibility of Apple opening its much loved Apple Store in India.
In the first one titled The Iconic Apple Stores are Coming to India!, we discussed Apple’s plans for setting up shop here. In the second, Apple Getting Closer to Opening Stores in India, we reported some of the roadblocks the company was facing in its plans. We highly recommend reading the two articles first to get a good understand of the entire story.
Now the good news: Apple might get to open its stores without the 30% limitation of sourcing.
The Indian government has a policy of Domestic Sourcing. It’s a stipulation that regulates foreign players establishing retail chains within India. The rule demands that the company has to source at least 30% of the raw materials used in production from India itself.
This stipulation was a problem for Apple as it did not have any partners in India who could provide it with the raw materials it needed; that too in keeping with the lofty standards it holds close to its heart.
Apple was in serious negotiations with the government, urging it to remove the stipulation. “Apple has given a presentation to the DIPP Secretary-headed panel on why its products should be considered ‘state-of-the-art’, ‘cutting edge’ and thus exempted from mandatory local sourcing norms,” the report said.
If the reaction of the government is any indication, Apple is hopeful that their application will go through. “Their products certainly meet the requirement for waiving the local sourcing clause,” a government spokesperson said on record.
There’s another fact that might influence the government’s decision in Apple’s favor – the company’s plans to set up manufacturing plants in India. This venture is sure to reduce Apple’s production costs dramatically while also generating thousands of employment opportunities.
The government has said that it will reach a decision in few days’ time. Nothing would cheer us more than it being in favor of Apple. We’ll keep our eyes and ears open to any development on this front, and keep you in the loop as well!!