The Budget 2019 brings with itself a slew of good news for global brands like Apple, OnePlus and Xiaomi in the country who’ve been looking to set up their retail stores. This will be made possible by relaxing local sourcing norms for these companies, who’re part of the singe brand FDI regulations in the country.
Apple’s been looking out for these exemptions to kickstart its full-fledged focus on the Indian market, but didn’t find any luck with the Indian government till now. Having said that, Apple won’t be the sole benefactor from these changes announced by the Finance Minister Nirmala Sitharaman on Friday at the Lok Sabha.
You also have brands in the auto sector who could bring in their technology and resort to using them to provide advanced services to the consumers.
Apple’s made repeated attempts to get the local sourcing eased at its end, and it seems the Indian government has finally given into those demands, which is only going to encourage higher proportion of Make in India project.
Apple believes that their state-of-art technology, which will be imported into the country for the manufacturing of iPhone, ensures making of top-quality handsets. They had even charted out multiple conditions in 2016, and Tim Cook even made a point of visiting PM Modi in India in 2016, and he also met him recently in the US.
Indian authorities have already offered Apple tax concessions with the requirement that more local components be used over time.
It has been seeking permission to open its own retail stores in India where it currently sells iPhones through re-sellers and easing of norms for single brand retail will aid the company and even others like Ikea to expand their presence and business in India.
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