India’s government may allow Apple to open retail stores in the country and provide a 2-3 year exemption from local sourcing requirements, The Times of India reports. Apple was expected to be completely exempted from laws requiring companies to source 30 percent of their products’ material locally because of the company’s status as a provider of “cutting-edge technology”, but the company’s application to bypass those rules was rejected by India’s finance minister two weeks ago.
Sources now say that discussions have begun between the finance ministry and Department of Industrial Policy and Promotion aimed at granting Apple the waiver, but only in the first few years of Apple’s retail store operations.
India’s Finance Minister Arun Jaitley stood firm in his belief that Apple needs to create more jobs in his country, saying, “When you offer such a large market to a foreign supplier, it’s only fair that you expect him to create some jobs in India. Otherwise, we will become a complete nation of traders only.” Sources said Apple is looking to split the difference, expecting to look at ramping up manufacturing and component sourcing in India as product demand increases, but pushing to be exempted for the first few years because it won’t be possible to set up those local vendor relationships immediately.
Apple already buys some chargers in India, which are being sold locally and exported to other countries. The company has also invested heavily in its new Apple Maps office in Hyderabad, expected to employ up to 4,000 people, while Apple manufacturing partner Foxconn has invested $10 billion in a new factory solely to produce Apple products in the Indian state of Maharashtra.
