Apple can finally open retail stores in India
The Indian government is relaxing some of its notoriously stringent rules on foreign investment, meaning that Apple—after more than a decade of having to depend on resellers—will finally be able to open retail stores in India.
The hurdle up until now has been a requirement that retailers locally source at least 30% of the goods sold in company-owned stores. But today (June 20), India’s government announced a three-year exemption for foreign entities—and companies that provide “cutting edge” technology will enjoy an additional five years of a “relaxed sourcing regime.”
The changes to the foreign direct investment (FDI) rules are meant to “provide ease of doing business in the country leading to larger FDI inflows contributing to growth of investment, incomes and employment,” the government said in a statement.
Apple is one of the biggest beneficiaries of the change in policy. The Cupertino, California-based company has been trying to open direct stores in India for some time now. But it could not meet the mandatory 30% local sourcing norm since India currently does not have the vendors that the company needs. The Indian government has turned down Apple’s request for opening direct stores at least once.
The Real Style ------- NP 2016
No comments:
Post a Comment