Apple has been putting a lot of effort into trying to enter the Indian market, which has proved to be tougher than expected. According to Reuters, the Indian Government made a decision to reject Apple once again. The main reason for this is the country’s rule that any company wanting to set up a retail location must sell at least 30 percent locally sourced goods.
What is interesting to mention is that some tech manufacturers are exempt from this rule, but Apple is not one of them. Even though the company applied for a waiver, it failed to provide any “material on record to justify it”.
News of this setback comes only a week after Apple CEO met with officials of the Indian Government, and after traveling the country for four days. Cook met with Indian Prime Minister Narendra Modi, while Lisa Jackson (Apple’s VP of the environment, policy, and social initiatives) visited the Barefoot College where iPads and Macs are used to educate.
Even though Apple is yet to enter this market, there are several franchise Apple retail locations in India. Apple plans to open at least three stores in this country, by the end of 2017. As can be expected this, these plans could be easily pushed back.
Interestingly enough, Foxconn is planning to build a $10 billion iPhone manufacturing plant in India. This should help Apple reach that 30 percent number, but it will take 18 months until the deal is finalized.