India Won't Get An Apple Store Even After Tim Cook's Visit

After a trip to India, meeting the prime minister and attending Bollywood parties, and praying at the Ganesha temple, the Apple CEO was not able to come up with a way around Indian regulations.
 
According to a source based on a Reuters report, India has said that Apple must follow the rule which mandates that foreign retailers sell at least 30 percent domestically-sourced goods if they want to open stores in the country. According to some Indian media outlets it has been previously reported that Narendra Modi government might have waived the 30 percent sourcing norm for Apple.
 
Image Source: Twitter
 
This decision could restrict Apple’s plan to expand its retail footprints in the second largest smartphone market in the world. India is at the moment emerging as a critical market for Apple after its sales slowed down in China for the first time.
 
However, selling in India is becoming quite a challenge for Apple. Even after 10 years of the launch of the first iPhone in India, the company has yet not been able to set up a direct store in the country. In order to sell through completely-owned stores, foreign retailers would need to procure at least 30 percent of the goods locally. Only companies who would be selling the “cutting-edge technology” are off the hook for this particular rule. As per the reports from Reuters, Apple products were not considered in this particular category.
 
An official, who does not wished to be revealed, told Reuters that:
 
“They did ask for a waiver but didn’t provide any material on record to justify it. The decision was taken only after a thorough examination of their application".
 
Currently, Apple manufactures most of its products in China.
 
In India, Apple products are sold through the distribution companies, allowing the company to hold around 2 percent of the market. This happens to be the second regulatory setback for the company this month. On May 3, the government denied the company permission to sell affordable redecorated phones in India.