After the government relaxed the mandatory sourcing norms in November, Apple had applied for exemption on grounds that it was introducing “state-of-the-art” and “cutting-edge technology” to the country. However, on insistence of the finance ministry, the Department of Industrial Policy and Promotion (DIPP) was asked to review the same. The DIPP found that there was “nothing to show that Apple’s technology is cutting edge” revealing that Apple may have once again hit a roadblock when it comes to opening its Apple Stores in India.
The DIPP reportedly hinted that since the technology is not what was conveyed by Apple, it would create controversy since there were other companies that have lined up for exemption as well. This would include Chinese companies such as LeEco and Xiaomi that seek waiver of the 30 percent local sourcing norm.
Apple CEO Tim Cook recently arrived in India on an action-packed 4-day tour that saw him meeting plenty of individuals from Prime Minister Modi to India’s top brass in the banking and telecom segments and even attending a Bollywood party hosted by actor Shahrukh Khan.
The CEO even announced the opening of Apple’s new development centre in Hyderabad. The company is determined to focus on tapping the abundance in skills and potential available in the country. This investment is expected to accelerate the company’s Maps development and create up to 4,000 jobs.