Apple will need to procure 30% of components locally if it wants to sell devices via its own retail stores.
Apple’s hopes of opening its own retail store in India may have hit a roadblock. According to a report by Bloomberg, India’s Foreign Investment Promotion Board (FIPB) has said that the company must comply with regulations and procure 30 percent of components locally, if it wants to sell its devices via its own retail stores. As most of Apple’s devices are made in China, it does not meet that criteria. While India does offer waivers for “cutting-edge technology” companies, the report says that the panel has decided to not being able to certify Apple under that exception. The report also notes that the decision by the FIPB needs to be ratified by the Government, and may still be overruled.
Back in February 2016, it was reported that the Indian Government was keen on approving Apple’s plans for opening retail stores across the country. A month earlier, Apple had reportedly filed an application with the Department of Industrial Policy and Promotion (DIPP) for opening its own stores.
This may not be the only setback Apple may be facing in India. Earlier this month, it was reported that the Government rejected Apple’s request to import and sell refurbished iPhones in the country. Apple had filed an application for the same earlier this year, and would have included setting up a facility to renovate used iPhones shipped from China.
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Shrey Pacheco
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