Apple may be exempt from local sourcing requirements in India

A government panel in India has recommended exempting Apple from mandatory local sourcing requirements, a move that would pave the way for Apple to open retail stores in the country, reports The Economic Times.

The company had given a detailed presentation to the committee headed by Department of Industrial Policy and Promotion (DIPP) Secretary Ramesh Abhishek on April 19, on its products, technology, innovations and camera. The DIPP will soon send the proposal for final approval to the Finance Ministry.

"The committee has found that the company's products are cutting edge technology and state-of-the-art. It has recommended to exempt them from the local sourcing norms," sources tell The Economic Times.

Getting a foothold in India has been a challenge for Apple. The company has opened its retail stores in a number of countries around the world, but not in India. The country has restrictive real estate investment laws for foreign companies. This seems about to change for Apple. Last November it was reported that Apple crossed the $1 billion sales mark in its India operations for the first time in the fiscal year that ended in March, according to results filed with the Registrar of Companies (RoC).