India’s finance ministry has rejected a government-panel recommendation to exempt Apple Inc. from local sourcing requirements, two government officials said, in a decision that could effectively block the technology company’s plan to open its own retail stores in the country.
“We are sticking to the old policy,“ said one of the officials. “We want local sourcing for job creation. You can’t have a situation where people view India only as a market. Let them start doing some manufacturing here.”
An Apple spokeswoman didn’t immediately respond to a request for comment.
India is a crucial market for Apple as it holds huge sales potential. Like China, which for years fueled the Cupertino, Calif., company’s growth, India is a large, developing economy in which more people can afford its high-end gadgets every year.
India wants to use the company’s interest in its market to attract investment and create the manufacturing facilities and jobs the country needs to sustain long-term growth.
Source: Why It Could Be a While Before Apple Can Open Stores in India – India Real Time – WSJ
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