After months of Yes-No-Maybe-Possibly from the Indian Government, Apple will finally catch a break in their Apple Stores project here. This time the push has come from the PM himself.
“Prime Minister Narendra Modi is clearing the way for Apple Inc. to open its first retail store in India”, reports Bloomberg. “Modi’s cabinet on Wednesday approved a three-year exemption on local-sourcing requirements [for Apple],” the report further added.
The cabinet has taken this step by declaring that Apple is a manufacturer of “cutting-edge technology” – the only grounds on which an exemption can be provided from the local-sourcing laws. For all the other type of manufacturers, the rule stipulates getting at least 30% of their raw materials from homegrown (or locally Indian) sources.
After all the mixed signals they got from the Indian government, this approval is the first real go ahead the Apple Store has received from them. The drama had been going on for quite some time now, much like the will-they-won’t-they love stories in our TV serials that ultimately end in happily ever after!
Interestingly, China’s Xiaomi Corp is likely to sharpen their battle axes, since they too were in talks with the government to seek exemption from the same rule. Their request was turned down. The government refused to give them a “cutting edge” status. With Apple getting the green light, Xiaomi will definitely look to pursue their case further.
For now, Tim Cook will be breathing a lot easier. He’s had his hands full with India — a market he’s desperate to tap into, and that too as early as possible. Unfortunately, none of his tactics seem to be working here. As a market, India behaves radically different from the rest of the world. Strategies that have worked elsewhere have fallen flat on their faces here.
Apple need to reorient their policies from the ground-up, and create a completely customised strategy for the Indian market. The Apple Stores is the right step in the right direction, so they have good reason to celebrate. However, their work is still cut out for them, as the fight in India has just begun.
Want to know which Indian cities will be the first to get the Apple Store? Click here to find out!
