Apple Inc., could open its first stores in India and they might eventually start manufacturing in Indian as FDI rules are relaxed. The new rules exempt foreign retailers for three years from a requirement to source 30 percent of the goods sold in company-owned stores locally.
India is the world’s fastest growing large smartphone market with sales expected to rise over 25 percent this year. Apple so far has less than 2% share in the smartphone market in the country and now with FDI rules are relaxed, they can set a bigger foot in India.
The retail rule changes are also likely to help Swedish furniture-retailer IKEA, which is setting up stores in Hyderabad and Mumbai. Analysts said this launch of Apple could make India a favourable destination for other companies too.
India is now targeting Apple and its partner Foxconn to start a manufacturing unit in India and this is a part of Prime Minister Narendra Modi’s agenda to bring in foreign manufacturers to India to create millions of jobs.
