Apple asking Indian government to relax FDI regulations to allow Apple Stores

Apple is attempting to open its own stores in India, as reported by the Business Standard. However, India has regulations that require companies to source 30% of its components from Indian companies. Apple is requesting that this restriction be relaxed so that it can set up stores legally…

According to the report, members of Apple management met with country officials to discuss the problem. A DIPP (the department which controls Indian foreign investment policy) representatives said:

“They (Apple) have clearly told us that they cannot adhere to the sourcing norms as they hardly use any hardware for their products. We have also told them that while the government is keen on investments, it cannot make exceptions. However, we can analyse a company’s needs on a case by case basis,” a senior DIPP official told Business Standard.

Apple’s argument is that iOS devices simply do not have enough hardware inside to be able to source 30% from Indian companies. Apple is also unlikely to want to change manufacturing processes for just one region. Without a change to policy however, a first-party entrance into the country is impossible. For the time being, Apple is relying on its reseller program in the country for its retail presence. In October, it was reported that Apple was planning to open 100 franchise locations in India.