Friday 8 July 2016

Apple wants more clarity on sourcing rules before opening retail stores in India

KOLKATA: Apple Inc is not rushing to open retail stores in India, despite the government ostensibly relaxing sourcing norms for single-brand retail. The government last month said foreign single-brand retailers can comply with the controversial 30% local sourcing requirements over the first five years of operations, and not from the first year itself, as was originally proposed in the policy.It also said these rules will not apply for the first three years of operations to foreign companies that sold
products with 'cutting-edge' and 'stateof-the-art' technology. When these rules were announced last month, it was perceived that they would benefit Apple. But the Cupertino-based maker of iPhones and iPads does not think so, said two persons familiar with the developments. Apple wants more clarity on sourcing rules before opening retail stores in India "There is a certain opaqueness regarding the rules. In addition, the company does not want to commit to complying with local sourcing requirements. It can only start manufacturing in or begin sourcing from India once it attains a certain scale of business which is difficult to estimate right now," said one of these persons.

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