Apple Corporation has identified Indian to be an important market on the path of growth, ideal for opening its retail outlets in a bid to expand its presence in India.
In India, there is a special window for foreign companies to who would like to operate through single brand retail outlets; the government mandate requires them to source 30% of its stock locally.
However under Timcook’s leadership Apple is trying to open its own retail outlets by not complying with the sourcing clause for atleast 2 – 3 years, until it gets a stronger hold on the market. While the DIPP panel (Department of Industrial Policy and Promotion) has recommended doing away with sourcing, the finance ministry has rejected the proposal as sourcing locally in mandatory for local production and creation of jobs. Fianance Minister had said, when you offer such a large market to a foreign supplier, it is only fair that you expect him to create some jobs in India. Otherwise, we will be a nation of traders only.”