India has relaxed the rules that have been keeping Apple from opening Apple Stores, clearing the way for the company to expand into the country, The New York Times reports. Indian law requires that companies opening retail locations source at least 30 perfect of the materials in the product’s construction from within India, which poses a big problem for Apple since the company sources materials and assembles its products mainly from China.
The new rules allow single-brand retailers “to temporarily meet the 30 percent requirement by buying goods made in India and then selling them overseas.” That would allow Apple to buy Indian made accessories like iPhone cases and sell them outside the country to offset the sales it is making on its own products within the country. After five years those rules will expire and Apple will have to meet the full sourcing requirement, but by then it should be possible for Apple to rejigger its supply chain to comply.
Apple began manufacturing the iPhone SE in India last year and has been allowed to sell them online, but had still been prevented from opening retail locations because the components were brought in from outside the country..