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Apple asked India to relax single-brand retail FDI rules to set up Apple Stores in India: Report

Apple’s plans of expanding its presence in India is slowly picking up steam and a Business Standard report now claims that the company is keen on setting up its own stores in the country. There

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Apple’s plans of expanding its presence in India is slowly picking up steam and a Business Standard report now claims that the company is keen on setting up its own stores in the country. There is only one obstacle that needs to be crossed before we can see Apple Stores in our country, and the Cupertino-based company has approached the government to relax the local sourcing clause in its FDI policy for single-brand retail.

Though the government has allowed 100 percent investment in a single-brand retail store, a clause in the policy requires the investor to source 30 percent of its contents from the country’s micro, small and medium enterprises. Apple, on its part, argues that its iPhones and iPads don’t have much hardware contents and its laptops are assembled products and thus should not have to adhere to this policy.

Apple has put forth its argument to the Department of Industrial Policy and Promotion, which is responsible for the country’s FDI policies. Though the officials initially shot down Apple’s request, they have promised to consider it again on a case-by-case basis.

With the help of aggressive EMI and buyback schemes, Apple is slowly seeing a larger number of people in India buying its products. It wants to cash in on this growing demand and one such way is to expand its presence by having more stores in the country. Currently it sells its products through retailers like Reliance Digital and distributors like Redington India. Recently though, it was reported that Reliance was planning on shutting down as many as 16 iStores in the country after Apple complained that they did not adhere to the company’s norms.

  • Published Date: February 28, 2014 1:33 PM IST
  • Updated Date: February 28, 2014 1:35 PM IST