If you are a fan of Apple products, it is time to rejoice as India is considering relaxing local sourcing norms for foreign companies selling their own brand only. This move will help the Cupertino, California-based company, which is an ultra-premium brand in India, open Apple Stores in the country, offer customers a more refined shopping experience and avoid import duties of 20%.
If everything goes well, Mumbai will soon get the first Apple Store in India. The single-brand retail outlets have been delayed due to the local sourcing norms.
Though no official announcement has been made yet, it is believed that the commerce and industry ministry is pushing the government to consider the export of goods from a foreign company’s factory in India as local sourcing. Livemint also cited sources saying that the time needed to meet the sourcing norms, which was five years before, will also be raised to eight years.
A foreign company, under the current policy, needs to purchase at least 30% of the product locally. Thus the relaxation of the sourcing norms will come as a welcoming change for companies like Apple.
For the American multinational technology company, the decision will bring more favourable news.
Apple has hit a roadblock in China mainly due to the country’s economic slowdown. In January, CEO Tim Cook announced an earnings miss for the fourth quarter of 2018.
With this setback looming large, India, which is the fastest-growing smartphone market in the world, will be a fantastic opportunity for Apple to get back on the track.
The company has already been busy figuring out the groundwork for its manufacturing in India. Its partner Foxconn Technology Group has been running quality tests for the iPhone XR. It is expected that the company will soon start mass production at a facility in southern India.
This decision came amid crucial talks between India and the US. On Saturday, the Modi government said that it will continue to seek to build strong economic ties.