The Indian government today announced a few changes to its rules on foreign direct investments (FDI) within the country, which previously required 30 percent of goods sold by a foreign company to be manufactured or produced within India (via The Times of India). The rule stagnated Apple's retail store growth within the country due to most of its products being created in China.

Now, Apple is going to be the recipient of a 3 year "relaxation" that India is introducing on its local sourcing rules, which was predicted earlier in the month, in addition to an extension of another 5 years on top of that if it can prove that the products it sells are "state of the art." India has previously exempted companies who proved such quality over the last few years, which prompted Apple to file a new application with the Indian government in May.

apple store logo 1

Apple's plans to open stores in the country had suffered a setback as the Foreign Investment Promotion Board (FIPB), under the finance ministry, red-flagged a panel's recommendation to relax the mandatory local sourcing norm for the Cupertino-based company to sell its products through the single-brand retail window.

The panel comprising representatives from departments of industrial policy and promotion (DIPP) and information technology had recommended a waiver from the 30% sourcing norm on the ground that Apple's products were "cutting-edge", which allows for doing away with the domestic procurement rule.

If it gets the 5 year extension, Apple could open and run retail stores in India for 8 years without needing to source products locally. Last month, Apple CEO Tim Cook met with Indian Prime Minister Narendra Modi to discuss these issues and reiterate India's importance to Apple's global iPhone market.

Currently, Apple's largest presence in India comes in the form of its Authorized Mobility Resellers program, which saw the Cupertino company partnering with third-party resellers to introduce an Apple presence in the country without directly installing full-blown Apple Stores.

Tag: India

Top Rated Comments

Douglas B Avatar
82 months ago
This is interesting and puts Apple in a position where they don't want their ego to be bruised -- hopefully it should encourage some really great Mac updates! Let's stay positive :)
? Their products are already state of the art. Sounds like business as usual to me.
Score: 8 Votes (Like | Disagree)
69Mustang Avatar
82 months ago
Not surprised and expected. That is why Tim was in India. All this delay was due to pressures from other suppliers. Don't forget, everyone bribes - not just Apple!
Yep. Other suppliers wanted Apple to comply with the same rules as everyone else. Can't say that I blame them. The 3 + 5 years seems like window dressing to me since Apple will be in compliance within 2 years. The Foxconn plant should be up and running in 18-24 months.
Score: 4 Votes (Like | Disagree)
MH01 Avatar
82 months ago
With the bribery comments right at the top with being the most liked, I at times wonder, even with the privilege of being born in the "first world" is education that rare? Having a proper read at the articles could probably fill that void, India just gave away to the Foreign Direct Investment in a lot of sectors, if one thinks this happens just "for Apple" then good for them, but they just opened up their market for defence, pharmaceuticals, airlines etc. http://timesofindia.indiatimes.com/business/india-business/Big-reforms-Government-introduces-100-FDI-in-defence-civil-aviation/articleshow/52831409.cms
In India, irrespective of the written rules, to get things done and moved along, one needs to make sure the right people benefit and sign the dotted line. We look at the situation, as corrupt and unacceptable, but that is cause we lack the knowledge of the culture, and it is us that are frankly naive. In the west, same happens, these companies lobby our governments, and we Believe we don't have corruption....not true
Score: 3 Votes (Like | Disagree)
Oblivious.Robot Avatar
82 months ago
In India, irrespective of the written rules, to get things done and moved along, one needs to make sure the right people benefit and sign the dotted line. We look at the situation, as corrupt and unacceptable, but that is cause we lack the knowledge of the culture, and it is us that are frankly naive. In the west, same happens, these companies lobby our governments, and we Believe we don't have corruption....not true
I just at times feel a little bad, I was born in India but I'm only half an Indian with British ancestry and believe me, for almost 22 years of my life, I was never a fan of that place.
But..
Things are actually changing with the new set of rules, and an updated government which is believe it or working for India against the previous "family orianted" idiots.

Now that the things are actually getting better, albeit at a slow place and that's understandable as it was horrible in the previous times with open ended corruption and still is, but even a little progress that has happened is a big deal when governing such a large populace.

India even got a better rank in the http://www.livemint.com/Politics/EcOTkT1wYfGkC0BvPbth4M/India-improves-ranking-in-global-corruption-index.html
While countries such as Brazil got worse, and it's surprisingly better score in the Indian subcontinent.

Sorry for the rant, I just idolised the western standard growing up that there is very little of India left in me, but however it's perceived over here is like a spit in the face.
Score: 3 Votes (Like | Disagree)
MH01 Avatar
82 months ago
I just at times feel a little bad, I was born in India but I'm only half an Indian with British ancestry and believe me, for almost 22 years of my life, I was never a fan of that place.
But..
Things are actually changing with the new set of rules, and an updated government which is believe it or working for India against the previous "family orianted" idiots.

Now that the things are actually getting better, albeit at a slow place and that's understandable as it was horrible in the previous times with open ended corruption and still is, but even a little progress that has happened is a big deal when governing such a large populace.

India even got a better rank in the http://www.livemint.com/Politics/EcOTkT1wYfGkC0BvPbth4M/India-improves-ranking-in-global-corruption-index.html
While countries such as Brazil got worse, and it's surprisingly better score in the Indian subcontinent.

Sorry for the rant, I just idolised the western standard growing up that there is very little of India left in me, but however it's perceived over here is like a spit in the face.
Ive been to Indiana few times for work, love it. The people are fantastic ! Though our politicians are just as bad as India ones...We just like to pretend ours are better cause it's the west lol. Money rules no matter where you are. Indian is growing very fast, I was in Hyderabad and was very impressed, India will grow fast with the middle class expanding. I look forward going back to india in the future to do more traveling .
Score: 3 Votes (Like | Disagree)
magnificent me Avatar
82 months ago
Not surprised and expected. That is why Tim was in India. All this delay was due to pressures from other suppliers. Don't forget, everyone bribes - not just Apple!
See Tim?....... That extra suitcase of cash came in handy. :p
You can take off the red dot, Tim.
Well played.
I guess Apple's suitcases of money paid off... I wonder how many people got paid off for this.
A recurrent theme anyone? A little sensitivity wouldn't hurt. Corruption has many forms, usually back door in the west.

Back to the article - major changes have happened in the Indian economy today hence apple's approval with many other major companies like IKEA. So no Tim's suitcase didn't do the trick sadly.

Apple knows the rules now. 30% local sourcing and you have 8 years to get your act together. It is simple as that. Nothing to do with Tim's invisible red tikka.
Score: 2 Votes (Like | Disagree)

Popular Stories

apple watch ultra hammer test

YouTuber Tests Apple Watch Ultra Durability With a Hammer: Table Breaks Before the Watch

Sunday September 25, 2022 2:27 pm PDT by
A YouTuber has put Apple's claims for the durability of the Apple Watch Ultra to the test by putting it up against a drop test, a jar of nails, and repeated hits with a hammer to test the sapphire crystal protecting the display. TechRax, a channel popular for testing the durability of products, first tested the Apple Watch Ultra by dropping it from around four feet high. The Apple Watch...
AirPods Max 2022 Colors

Ten Things AirPods Pro 2 Tell Us About AirPods Max 2

Saturday September 24, 2022 1:00 am PDT by
Upon the release of the second-generation AirPods Pro, the AirPods Max became the oldest current-generation AirPods product still in Apple's lineup. Introducing several new features like Adaptive Transparency and the H2 chip, the second-generation AirPods Pro may provide some of the best indications yet of what to expect from the second-generation AirPods Max. Almost two years later, rumors...
tim cook spring loaded event

Six Major Products to Expect From Apple in 2023

Sunday September 25, 2022 10:57 am PDT by
As we approach the end of a busy product release season for Apple with only new iPads and Macs left to be announced over the next month or so, we're also setting our sights on 2023. Apple is rumored to have several major products in the pipeline for next year, including new Macs, a new HomePod, a VR/AR headset, and so much more. Other than new iPhones and Apple Watches, which are expected...
Tim Cook Apple Event

Gurman: New iPads and Macs May Be Announced Through Press Releases, No October Event

Sunday September 25, 2022 6:50 am PDT by
Apple may decide to release its remaining products for 2022, which include updated iPad Pro, Mac mini, and 14-inch and 16-inch MacBook Pro models, through press releases on its website rather than a digital event, according to Bloomberg's Mark Gurman. In his latest Power On newsletter, Gurman said that Apple is currently "likely to release its remaining 2022 products via press releases,...
apple watch series 7 aluminum colors yellowbg

Don't Want the Apple Watch Ultra or Series 8? Amazon Has Record Low Prices on Series 7 Models This Week

Friday September 23, 2022 6:56 am PDT by
The Apple Watch Series 8 and Apple Watch Ultra are now available to purchase, but if you aren't interested in these updates you can save a lot of money on Series 7 models right now on Amazon. Note: MacRumors is an affiliate partner with Amazon. When you click a link and make a purchase, we may receive a small payment, which helps us keep the site running. The best deals are on cellular...
iphone 14 pro max deep purple

iPhone 15 'Ultra' Could Replace Pro Max Model Next Year

Sunday September 25, 2022 7:02 am PDT by
Apple is gearing up to possibly replace its "Pro Max" iPhone with an all-new "Ultra" iPhone 15 model next year, reliable Bloomberg journalist Mark Gurman said today. Writing in his latest Power On newsletter, Gurman said that for the iPhone 15, Apple is planning a revamped design alongside USB-C and a potential name change. Apple could replace its "Pro Max" branding, which it started to use...
AirPods Pro Second Generation 2 Pairing Feature 1

AirPods Pro 2 Engravings Appear in iOS During Pairing and Connecting

Friday September 23, 2022 9:40 am PDT by
Customers who personalize their second-generation AirPods Pro charging case with an engraving will now have that engraving reflected directly on iOS as they pair and connect their AirPods Pro. Apple allows customers to personalize their AirPods Pro charging case with a special engraving that can include select emojis and Memojis. Unlike before, starting with the second-generation AirPods...
General iOS 16 Feature Yellow

Some iOS 16 Users Continue to Face Unaddressed Bugs and Battery Drain Two Weeks After Launch

Monday September 26, 2022 7:34 am PDT by
Today marks exactly two weeks since Apple released iOS 16 to the public. Besides the personalized Lock Screen, major changes in Messages, and new features in Maps, the update has also seen its fair share of bugs, performance problems, battery drain, and more. After major iOS updates, it's normal for some users to report having issues with the new update, but such reports usually subside in...
14 vs 16 inch mbp m2 pro and max feature 1

New 14-Inch and 16-Inch MacBook Pros Reportedly Launching Later This Year

Friday September 23, 2022 7:08 am PDT by
Apple plans to release new MacBook Pro models in the fourth quarter of 2022, according to supply chain publication DigiTimes. The report does not mention specific models, but it very likely refers to the next-generation 14-inch and 16-inch MacBook Pros given that the 13-inch model was already updated earlier this year. There has been uncertainty surrounding the timing of new 14-inch and...