Apple has just received the green light to open its iconic retail stores in India: The country’s government today officially announced that it will relax is foreign direct investment (FDI) norms, which previously required foreign companies to manufacture 30% of goods locally. That requirement had appeared to have stalled Apple’s plans to open stores in India, as its products are manufactured in China (via TNW).
In line with previous rumours, Apple is expected to be the beneficiary of a three-year relaxation of such norms in India, with an extension of up to five years possible if it can be proven that products are “state of the art”, reports the Times of India.
The panel comprising representatives from departments of industrial policy and promotion (DIPP) and information technology had recommended a waiver from the 30% sourcing norm on the ground that Apple’s products were “cutting-edge”, which allows for doing away with the domestic procurement rule.
This means Apple could gain up to eight years of running its stores without the need to manufacture any part of its products locally. This should be enough for the company to expand its footprint into a market that it has been targeting lately.