India May Exempt Apple From Sourcing Requirement For 'Two to Three Years'

The Indian government is prepared to allow Apple to open its first three planned retail outlets in the country without any sourcing requirement for their first few years of business, reports Times of India.

As a rule, 30 percent of goods sold by foreign companies must be manufactured or produced in the country, a requirement Apple does not meet as its products are largely made in China.

indian_flag
That obstacle initially appeared to have been removed for Apple last year, when India exempted retailers selling state-of-the-art goods from the rule, prompting the company to file a new application with the Indian government.

However, a recommendation from the country's Department of Industrial Policy and Promotion (DIPP) to allow Apple to move ahead with single-brand retail outlets was shot down by the ministry of finance, which decided Apple's products do not fall into the cutting-edge technology category.

Now, the DIPP and the finance ministry appear to be open to the idea of allowing Apple to set up shop in the country without immediately complying with the 30 percent rule. This would allow the company to look at the option of manufacturing in India and begin sourcing components locally as volume increases.

Apple has reportedly already informed the government that it has started buying chargers from the country, which are also being exported.

"It is only fair to insist on some local production and two-three years is a reasonable period. Five years may be too long," said the Times of India source, who did not wish to be identified.

The developments follow Apple CEO Tim Cook's recent weeklong visit to India, where he met with Prime Minister Narendra Modi and other local business leaders, actors, politicians, and developers.

During the visit, Apple announced the launch of a Maps development center in Hyderabad and an iOS app and design accelerator in Bangalore. Last quarter, Apple saw its revenue from India grow 56 percent, surpassing $1 billion.

Tag: India

Top Rated Comments

djcerla Avatar
69 months ago
Hmm not sure why they should bend the rules just for Apple. It is just a business after all.
I hope the government knows what it's doing then, it would certainly help them to have people making Apple parts there.
Because Foxconn will open shop there in that timeframe, and build iPhones locally.

http://9to5mac.com/2016/05/09/foxconn-india-iphone-manufacturing/
Score: 13 Votes (Like | Disagree)
Mac Fly (film) Avatar
69 months ago
And so, logically after reading this article MR commenters conclude the Beats purchase was probably a waste of money.
Score: 7 Votes (Like | Disagree)
ShadovvMoon Avatar
69 months ago
Tim must have given the Indian government some watchbands.
Score: 7 Votes (Like | Disagree)
69Mustang Avatar
69 months ago
I'm amazed at how many people think that's "reasonable" to require 30% of the goods made locally. If it's reasonable, then let the USA require all stores in the USA have 30% of their goods made here. I'd say about 50% of them would go out of business immediately including Apple's stores and nearly 100% of all clothing stores. NOTHING is made here these days but food (and that provides jobs for illegals, not citizens) but hey, that's OKAY, we're a developed country and people don't need manufacturing jobs here. Let them have "service" jobs (most of which pay little to nothing beyond minimum wage) and soon we'll be more of a 3rd world country than most 3rd world countries already are. Yes, there are some jobs you can't outsource and there are quite a few high-end and skilled jobs (I'm in electronic engineering myself so I haven't had a rough time finding a job), but these types of jobs aren't unlimited and with over 300 MILLION people, they simply cannot and won't cut it to maintain a large middle class anymore, which is why the middle class is slowly but surely disappearing.

Now look at the minimum "free money" proposal in Switzerland (that failed for good reason, but had a point about the future). What happens when robots replace nearly ALL jobs at some point in the next 100 years? You'll have some jobs repairing robots (although one could argue eventually they will have robots that do that too) and some government jobs and not much else. It's the Jetsons except that that "slave driving Mr. Spacely" job "that made me push 20 buttons today" won't exist. You'll have those that OWN the robots and everyone else can just DIE. You'll have the top 1% and the DEAD because there won't be ANY of the jobs we take for granted even today. We're not talking about a few programmable robots assembling cars or spray painting, but eventually we will have "smart robots" that can pretty much be programmed to do just about ANYTHING. Why pay a person even $20,000 a year (not even counting benefits) if you can get a robot that can maybe do the job of 3 people (at least 3 shifts) that costs $100,000 that will last at least 10-20 years and will be paid for in less than two?

Sound ridiculous? Of course it does NOW. But 20 years from now? 50? 100? No, assuming we don't blow ourselves to oblivion by then, it WILL be a REALITY and people aren't even remotely prepared for that time. The problem is we keep procreating like fracking bunny rabbits (and the most are the at the bottom income levels that can't afford to raise them properly) and that means even more people with less and less jobs. It's not sustainable in the long run. You'll have people volunteering to help colonize Mars just so they don't starve to death here while the top 0.01% will be TRILLIONAIRES. It'll never be enough, though. They'll want to be quadrillionaires. Can't spend that much? That's not the point. Bill Gates can never spend all his money in any reasonable fashion. You don't exactly seeing him giving more than a small pittance away (at the insistence of his wife so she can feel better about being rich) relative to his wealth. Hey, invest it in AI and even better robots! Maybe one day the AIs will become self-aware and decide that top 0.01% is a waste of genetic material and do something about it?

There's this hypothesis in the wacky world of Ancient Aliens that the so-called "grey aliens" are actually cyborg robots and that they probably have either killed or imprisoned (in some kind of "Matrix") their masters at some point ala Terminator 2 meets The Matrix for either efficiency reasons or to protect them from "harm" (you're much safer in a virtual reality) and that's why the so-called Sumerian "gods" that are supposedly 8-feet tall and look like us because they created us through genetic manipulation aren't the aliens described in all these "close encounters" stories, but rather these identical looking 3.5 foot "greys" that are emotionless and mostly interested in genetic experiments (What would machines be interested in if they were self-aware? Programming...genetic programming sounds like a good guess). So maybe some trilloinaire will have a conscience with all these humans starving to death and figure, hey, I'll "save" what's left of humanity and put us into a Matrix-style virtual reality, kept alive on the bare minimum amounts of nutrients needed to maintain a never-ending dream state and used to further some experiment or the other. It's safe to say in 100 years we probably won't be able to tell a virtual reality from the real thing.... Or are we in it already??? :eek: ;)
Word salad needs croutons... and a point. Mostly croutons though.
Score: 6 Votes (Like | Disagree)
2457282 Avatar
69 months ago
Tim: can we have an exemption.
India: no
Tim: we will build a big plant and employ lots of people.
India: wow that great, we love it. When will that happen.
Tim: well it should be up and running in three years if we get the exemption, but we may decide to move the plant to Bangladesh or Pakistan if we don't.
India: oh, okay what if we give you an exemption for three years and then when the plant is operational you won't need the expemption.
Tim: sounds good......

To be continued.
Score: 5 Votes (Like | Disagree)
69Mustang Avatar
69 months ago
Because the rule is bad for India, and there are people in the government who know it. They may be using Apple to help institute some needed reform.
How is the 30% rule bad for India? From afar, it seems they want companies to have skin in the game. They want companies to contribute to the Indian economy beyond just selling to the citizens.
Score: 5 Votes (Like | Disagree)

Top Stories

m1x mac mini screen feature

High-End 'M1X' Mac Mini With New Design and Additional Ports Expected to Launch in the 'Next Several Months'

Sunday August 22, 2021 5:59 am PDT by
Apple can be expected to launch an updated high-end Mac mini with a new design and a faster "M1X" Apple silicon processor in the "next several months," Bloomberg's Mark Gurman reports. In the latest publication of his Power On newsletter, Gurman writes that a new high-end Mac mini, which has previously been reported to feature a new design with additional ports, can be expected to replace...
mac scanner permission error

Apple Says Fix Planned for 'You Do Not Have Permission to Open the Application' Error When Using a Scanner on Mac

Saturday August 14, 2021 6:15 am PDT by
In a newly published support document on its website, Apple has acknowledged an error that some users may receive when they try to use a scanner with a Mac in the Image Capture app, Preview app, or the Printers & Scanners section of System Preferences. A screenshot of the error message from the HP Support Community When attempting to use a scanner with a Mac, Apple said users might get an...
iCloud General Feature

iCloud+'s New Custom Email Domain Feature Now Available in Beta

Wednesday August 25, 2021 7:48 am PDT by
Starting with iOS 15, iPadOS 15, and macOS Monterey, users with a paid iCloud+ storage plan can personalize their iCloud email address with a custom domain name, such as johnny@appleseed.com, and the feature is now available in beta. iCloud+ subscribers interested in setting up a custom email domain can visit the beta.icloud.com website, select "Account Settings" under their name, and select ...
original iphone

Phil Schiller Says iPhone Was 'Earth-Shattering' Ten Years Ago and Remains 'Unmatched' Today

Monday January 9, 2017 7:15 am PST by
To commemorate the tenth anniversary of the iPhone, Apple marketing chief Phil Schiller sat down with tech journalist Steven Levy for a wide-ranging interview about the smartphone's past, present, and future. The report first reflects upon the iPhone's lack of support for third-party apps in its first year. The argument inside Apple was split between whether the iPhone should be a closed...
macbookpro13large

macOS Big Sur Update Bricking Some Older MacBook Pro Models

Sunday November 15, 2020 5:33 am PST by
A large number of late 2013 and mid 2014 13-inch MacBook Pro owners are reporting that the macOS Big Sur update is bricking their machines. A MacRumors forum thread contains a significant number of users reporting the issue, and similar problems are being reported across Reddit and the Apple Support Communities, suggesting the problem is widespread. Users are reporting that during the...
m1 imac orange

New iMac Tidbits: Headphone Jack on Side, Ethernet Port on Power Adapter, Spatial Audio and WiFi 6 Support, No SD Card Slot

Wednesday April 21, 2021 6:38 am PDT by
Apple yesterday announced a completely redesigned 24-inch iMac with the M1 Apple silicon chip. The new iMac, the first major redesign of the Mac desktop computer since 2012, has several changes compared to the previous generation. In the aftermath of the event, a few new features and tidbits may have slipped under the radar, so we’ve compiled this list of some of the less-talked-about...
General YouTube Feature 1

YouTube Premium and Music Surpass 50 Million Subscribers

Friday September 3, 2021 2:19 am PDT by
YouTube says it has passed 50 million subscribers for its Premium and Music subscriptions, making it the "fastest growing music subscription" service in the world, according to YouTube's global head of music, Lyor Cohen. YouTube says that it has more than 50 million paying subscribers collectively across YouTube Premium and YouTube Music. The Google-owned service says it attributes this...
Top Stories 75 Thumbnail

Top Stories: Last-Minute iPhone 13 Rumors, Apple Announces App Store Changes, and More

Saturday September 4, 2021 6:00 am PDT by
The finish line is in sight! Apple's annual iPhone event is likely just a week or so away and all eyes will be on the company as it unveils the next version of its most popular product line. With any luck, we'll also see the next-generation Apple Watch and perhaps even some new AirPods. Other news this week saw Apple making some more changes to its App Store policies in response to a...
omg lightning cable comparison

Security Researcher Develops Lightning Cable With Hidden Chip to Steal Passwords

Thursday September 2, 2021 6:59 am PDT by
A normal-looking Lightning cable that can used to steal data like passwords and send it to a hacker has been developed, Vice reports. The "OMG Cable" compared to Apple's Lightning to USB cable. The "OMG Cable" works exactly like a normal Lightning to USB cable and can log keystrokes from connected Mac keyboards, iPads, and iPhones, and then send this data to a bad actor who could be over a...
studio buds family

Beats Studio Buds Debuting Today With Active Noise Cancellation, Stemless Design, and More for $150

Monday June 14, 2021 8:00 am PDT by
We've seen a lot of teasers about the Beats Studio Buds over the past month since they first showed up in Apple's beta software updates, and today they're finally official. The Beats Studio Buds are available to order today in red, white, and black ahead of a June 24 ship date, and they're priced at $149.99. The Studio Buds are the first Beats-branded earbuds to truly compete with AirPods...