India eases rules on local sourcing, paves way for country's first Apple Stores
The Indian government on Monday announced loosened policies towards local sourcing by foreign retailers, likely setting the stage for Apple launching its first stores in the country.
Foreign companies running single-brand stores now have a three-year grace period before they have to meet local sourcing quotas, Bloomberg reported on Monday. If a foreign business can show it's selling state-of-the-art technology, that grace period can be extended by another five years.
The government's Finance Ministry recently declined to give Apple an exception to the old sourcing rules, prompting Commerce and Industry Minister Nirmala Sitharaman to begin talks with her Finance colleagues. That appears to have led to compromises to accommodate Apple -- earlier in June, Bloomberg said that the government was willing to change regulations if it could get a solid timeframe on when local manufacturing might happen.
Apple's main assembly partner, Foxconn, is believed to be planning an Apple-focused factory for India, but even once a deal is signed it could take 18 months for the facility to be finished and start operations.
With the new rules, Apple will have to re-apply for permission to launch stores, Sitharaman told the press earlier today.
Foreign companies running single-brand stores now have a three-year grace period before they have to meet local sourcing quotas, Bloomberg reported on Monday. If a foreign business can show it's selling state-of-the-art technology, that grace period can be extended by another five years.
The government's Finance Ministry recently declined to give Apple an exception to the old sourcing rules, prompting Commerce and Industry Minister Nirmala Sitharaman to begin talks with her Finance colleagues. That appears to have led to compromises to accommodate Apple -- earlier in June, Bloomberg said that the government was willing to change regulations if it could get a solid timeframe on when local manufacturing might happen.
Apple's main assembly partner, Foxconn, is believed to be planning an Apple-focused factory for India, but even once a deal is signed it could take 18 months for the facility to be finished and start operations.
With the new rules, Apple will have to re-apply for permission to launch stores, Sitharaman told the press earlier today.
Comments
8 years is a long time ... The thing about emerging markets, is that they emerge/change!
Also, this could be an entree for other deals.
Say, if Apple were to setup an iDevice repair/refurbishing facility in India -- could that open the Indian market to high-quality (but lower cost) refurbished iDevices, and help build the Indian infrastructure at the same time.
The Indians are no dummies—even the bureaucrats.
The market there for Apple products is potentially so much larger with full-fledged retail stores. And I think we're in for a surprise when we learn of the demand once the stores are in place.
Given these first years of experience Apple and India will have, I think there will be new opportunities for both sides.
There would also seem to be far fewer government-imposed restrictions (than in China) for software, social, and security aspects of the products.
A more vibrant and productive software development economy could also be a welcome by-product for both sides.
It sure would be nice to hear back from some of them now...
What other issues? Seems like you have formed an opinion, and are finding reasons to back it.
Think 3-8years is a fair amount of time to get to 30% of local sourcing if a company is interested in doing so.
His pay appears to be $36k for being the governor of India'so central bank. Which is amazingly low from a western perspective.
As for your comment about Cook.... what drugs are you on?