The Indian government today announced a few changes to its rules on foreign direct investments (FDI) within the country, which previously required 30 percent of goods sold by a foreign company to be manufactured or produced within India (via The Times of India). The rule stagnated Apple's retail store growth within the country due to most of its products being created in China.

Now, Apple is going to be the recipient of a 3 year "relaxation" that India is introducing on its local sourcing rules, which was predicted earlier in the month, in addition to an extension of another 5 years on top of that if it can prove that the products it sells are "state of the art." India has previously exempted companies who proved such quality over the last few years, which prompted Apple to file a new application with the Indian government in May.

apple store logo 1

Apple's plans to open stores in the country had suffered a setback as the Foreign Investment Promotion Board (FIPB), under the finance ministry, red-flagged a panel's recommendation to relax the mandatory local sourcing norm for the Cupertino-based company to sell its products through the single-brand retail window.

The panel comprising representatives from departments of industrial policy and promotion (DIPP) and information technology had recommended a waiver from the 30% sourcing norm on the ground that Apple's products were "cutting-edge", which allows for doing away with the domestic procurement rule.

If it gets the 5 year extension, Apple could open and run retail stores in India for 8 years without needing to source products locally. Last month, Apple CEO Tim Cook met with Indian Prime Minister Narendra Modi to discuss these issues and reiterate India's importance to Apple's global iPhone market.

Currently, Apple's largest presence in India comes in the form of its Authorized Mobility Resellers program, which saw the Cupertino company partnering with third-party resellers to introduce an Apple presence in the country without directly installing full-blown Apple Stores.

Tag: India

Top Rated Comments

Douglas B Avatar
123 months ago
This is interesting and puts Apple in a position where they don't want their ego to be bruised -- hopefully it should encourage some really great Mac updates! Let's stay positive :)
? Their products are already state of the art. Sounds like business as usual to me.
Score: 8 Votes (Like | Disagree)
69Mustang Avatar
123 months ago
Not surprised and expected. That is why Tim was in India. All this delay was due to pressures from other suppliers. Don't forget, everyone bribes - not just Apple!
Yep. Other suppliers wanted Apple to comply with the same rules as everyone else. Can't say that I blame them. The 3 + 5 years seems like window dressing to me since Apple will be in compliance within 2 years. The Foxconn plant should be up and running in 18-24 months.
Score: 4 Votes (Like | Disagree)
MH01 Avatar
123 months ago
With the bribery comments right at the top with being the most liked, I at times wonder, even with the privilege of being born in the "first world" is education that rare? Having a proper read at the articles could probably fill that void, India just gave away to the Foreign Direct Investment in a lot of sectors, if one thinks this happens just "for Apple" then good for them, but they just opened up their market for defence, pharmaceuticals, airlines etc. http://timesofindia.indiatimes.com/business/india-business/Big-reforms-Government-introduces-100-FDI-in-defence-civil-aviation/articleshow/52831409.cms
In India, irrespective of the written rules, to get things done and moved along, one needs to make sure the right people benefit and sign the dotted line. We look at the situation, as corrupt and unacceptable, but that is cause we lack the knowledge of the culture, and it is us that are frankly naive. In the west, same happens, these companies lobby our governments, and we Believe we don't have corruption....not true
Score: 3 Votes (Like | Disagree)
Oblivious.Robot Avatar
123 months ago
In India, irrespective of the written rules, to get things done and moved along, one needs to make sure the right people benefit and sign the dotted line. We look at the situation, as corrupt and unacceptable, but that is cause we lack the knowledge of the culture, and it is us that are frankly naive. In the west, same happens, these companies lobby our governments, and we Believe we don't have corruption....not true
I just at times feel a little bad, I was born in India but I'm only half an Indian with British ancestry and believe me, for almost 22 years of my life, I was never a fan of that place.
But..
Things are actually changing with the new set of rules, and an updated government which is believe it or working for India against the previous "family orianted" idiots.

Now that the things are actually getting better, albeit at a slow place and that's understandable as it was horrible in the previous times with open ended corruption and still is, but even a little progress that has happened is a big deal when governing such a large populace.

India even got a better rank in the http://www.livemint.com/Politics/EcOTkT1wYfGkC0BvPbth4M/India-improves-ranking-in-global-corruption-index.html
While countries such as Brazil got worse, and it's surprisingly better score in the Indian subcontinent.

Sorry for the rant, I just idolised the western standard growing up that there is very little of India left in me, but however it's perceived over here is like a spit in the face.
Score: 3 Votes (Like | Disagree)
MH01 Avatar
123 months ago
I just at times feel a little bad, I was born in India but I'm only half an Indian with British ancestry and believe me, for almost 22 years of my life, I was never a fan of that place.
But..
Things are actually changing with the new set of rules, and an updated government which is believe it or working for India against the previous "family orianted" idiots.

Now that the things are actually getting better, albeit at a slow place and that's understandable as it was horrible in the previous times with open ended corruption and still is, but even a little progress that has happened is a big deal when governing such a large populace.

India even got a better rank in the http://www.livemint.com/Politics/EcOTkT1wYfGkC0BvPbth4M/India-improves-ranking-in-global-corruption-index.html
While countries such as Brazil got worse, and it's surprisingly better score in the Indian subcontinent.

Sorry for the rant, I just idolised the western standard growing up that there is very little of India left in me, but however it's perceived over here is like a spit in the face.
Ive been to Indiana few times for work, love it. The people are fantastic ! Though our politicians are just as bad as India ones...We just like to pretend ours are better cause it's the west lol. Money rules no matter where you are. Indian is growing very fast, I was in Hyderabad and was very impressed, India will grow fast with the middle class expanding. I look forward going back to india in the future to do more traveling .
Score: 3 Votes (Like | Disagree)
magnificent me Avatar
123 months ago
Not surprised and expected. That is why Tim was in India. All this delay was due to pressures from other suppliers. Don't forget, everyone bribes - not just Apple!
See Tim?....... That extra suitcase of cash came in handy. :p
You can take off the red dot, Tim.
Well played.
I guess Apple's suitcases of money paid off... I wonder how many people got paid off for this.
A recurrent theme anyone? A little sensitivity wouldn't hurt. Corruption has many forms, usually back door in the west.

Back to the article - major changes have happened in the Indian economy today hence apple's approval with many other major companies like IKEA. So no Tim's suitcase didn't do the trick sadly.

Apple knows the rules now. 30% local sourcing and you have 8 years to get your act together. It is simple as that. Nothing to do with Tim's invisible red tikka.
Score: 2 Votes (Like | Disagree)

Popular Stories

streaming black friday 2025

Black Friday Streaming Deals Include Big Savings on Disney+, Hulu, Apple TV, and More

Monday November 24, 2025 8:03 am PST by
We've been focusing on deals on physical products over the past few weeks, but Black Friday is also a great time of year to purchase a streaming membership. Some of the biggest services have great discounts for new and select returning members this week, including Disney+, Hulu, Paramount+, Peacock, and more. Note: MacRumors is an affiliate partner with some of these vendors. When you click a...
iOS 26 on Three iPhones

iOS 27 Will Reportedly Have Two Key Upgrades

Sunday November 23, 2025 8:48 am PST by
iOS 27 will reportedly have two major elements: quality improvements and new AI features. In his Power On newsletter today, Bloomberg's Mark Gurman said that iOS 27 will be similar to Mac OS X Snow Leopard, in the sense that Apple is focused on improving "quality and underlying performance" over adding new features. Gurman said there is one exception to this rule, though, as he expects...
General Black Friday Deals 25 Red

Apple Black Friday Deals Available Now on AirPods, iPads, Accessories, and More

Friday November 21, 2025 8:48 am PST by
We're only a few days away from Black Friday, which will take place on Friday, November 28 in 2025. As always, this will be the best time of the year to shop for great deals, including popular Apple products like AirPods, iPad, Apple Watch, and more. In this article, the majority of the discounts will be found on Amazon. Note: MacRumors is an affiliate partner with some of these vendors. When...
iOS 26

iOS 26.2 Adds These New Features to Your iPhone

Thursday November 20, 2025 10:50 am PST by
iOS 26.2 is currently in beta testing. The upcoming update includes a handful of new features and changes on the iPhone, including a new Liquid Glass slider for the Lock Screen's clock, offline lyrics for Apple Music, and more. In a recent press release, Apple confirmed that iOS 26.2 will be released to all users in December, but it did not provide a specific release date. Keep reading...
maxresdefault

The MacRumors Show: iPhone 18 Pro Looks Like a Huge Upgrade

Friday November 21, 2025 9:10 am PST by
On this week's episode of The MacRumors Show, we talk through all of the new features and improvements expected to come to next year's iPhone 18 Pro and iPhone 18 Pro Max models. Subscribe to The MacRumors Show YouTube channel for more videos Apple's next-generation iPhones are less than ten months away and we already have a good idea about what to expect based on corroborated leaks, rumors,...
Apple Foldable Thumb

Foldable iPhone to Debut These Three Breakthrough Features

Tuesday November 25, 2025 7:09 am PST by
Apple's first foldable iPhone is expected to launch alongside the iPhone 18 Pro models in fall 2026, and it's shaping up to include three standout features that could set it apart from the competition. The book-style foldable will reportedly feature an industry-first 24-megapixel under-display camera built into the inner display, according to a recent JP Morgan equity research report. That...
apple news banner

Apple News Loses CNN

Monday November 24, 2025 7:56 am PST by
American multinational news company CNN has abruptly pulled its content from Apple News, Semafor reports. CNN quietly removed its stories from Apple News over the weekend and there is no longer a feed from the network to subscribe to in the app. This effectively ends its distribution agreement with Apple while the two sides negotiate new terms. Discussions are apparently ongoing and CNN's...
amazon black friday

Amazon Kicks Off Black Friday Sale With Major Discounts on Apple Accessories, TVs, and More

Sunday November 23, 2025 7:12 am PST by
Black Friday deals have begun, and Amazon is one of the best places you can find steep discounts on numerous products this week. We've already collected all of the best Apple-related deals you'll find at Amazon (and other retailers) in our Apple Black Friday Deals post, so below you'll find other discounts on devices like Anker accessories, Beats headphones, video games, TVs, and more. Note:...
Apple Shopping Event 2025

Apple Announces 2025 Black Friday Event, Here's What You Can Get

Thursday November 20, 2025 6:28 am PST by
Apple's annual four-day Black Friday through Cyber Monday shopping event is returning on Friday, November 28 through Monday, December 1 in many countries, including the United States, Canada, Australia, New Zealand, France, Germany, Italy, Spain, the United Kingdom, Belgium, the Netherlands, Sweden, Thailand, and others. During the shopping event, customers can get an Apple gift card with...