India Extends Hand to Apple and Others by Easing Rules on Foreign Firms
- 6 years ago
India Extends Hand to Apple and Others by Easing Rules on Foreign Firms
Single-brand shoe or clothing companies like Uniqlo could also find India a more appealing place to operate stores, perhaps buying some products here to sell overseas
and others to sell locally, said Ankur Bisen, senior vice president of retail at Technopak, a consulting firm based in New Delhi.
Apple and other multinational retailers had lobbied the government for several years to ease a requirement
that foreign-owned, single-brand retailers obtain 30 percent of the value of products sold in India from suppliers in the country.
In addition to the changes in the retail sector, the government also said it would allow up to 49 percent of Air India, the troubled national air carrier
that is now up for sale, to be bought by foreign airlines.
In a statement, the government said the changes would contribute to "growth of investment, income
and employment." Among the potential beneficiaries of the changes is Apple, which has long sought to open stores in India.
If, for instance, Apple sold $100 million of its products in India, it could meet the target
by buying $30 million of India-made leather cases and selling them outside the country.
The changes could lead Apple and other companies based outside this country of 1.2 billion to significantly expand their retail presence here.
Single-brand shoe or clothing companies like Uniqlo could also find India a more appealing place to operate stores, perhaps buying some products here to sell overseas
and others to sell locally, said Ankur Bisen, senior vice president of retail at Technopak, a consulting firm based in New Delhi.
Apple and other multinational retailers had lobbied the government for several years to ease a requirement
that foreign-owned, single-brand retailers obtain 30 percent of the value of products sold in India from suppliers in the country.
In addition to the changes in the retail sector, the government also said it would allow up to 49 percent of Air India, the troubled national air carrier
that is now up for sale, to be bought by foreign airlines.
In a statement, the government said the changes would contribute to "growth of investment, income
and employment." Among the potential beneficiaries of the changes is Apple, which has long sought to open stores in India.
If, for instance, Apple sold $100 million of its products in India, it could meet the target
by buying $30 million of India-made leather cases and selling them outside the country.
The changes could lead Apple and other companies based outside this country of 1.2 billion to significantly expand their retail presence here.