Amended foreign investment rules clear the way for Apple India stores, and the possibility for the US technology giant to start manufacturing there.
Under the new rules, foreign retailers are exempted for three years from a requirement to locally source 30 per cent of the goods sold in company-owned stores.
This means Apple, which now sells its hardware through resellers and first applied for store licences in January, can set up its own shops in India, the world’s fastest-growing major smartphone market with sales expected to rise more than 25 per cent this year.
Apple, which has a less than 2 per cent share in India’s smartphone market, can resubmit its application for store licences.
India has been lobbying Apple and its partner Foxconn to start manufacturing in India as part of Prime Minister Narendra Modi’s agenda to bring in foreign manufacturers to create millions of jobs. The rule-change announcement comes a month after Apple boss Tim Cook met Modi to discuss the company’s plans for retail and manufacturing in India.
Meanwhile, India’s new look at retail rules may also help with expansion for Swedish furniture-retailer Ikea, which is setting up stores in Hyderabad and Mumbai.