India throws a spanner in Apple's plans to open its retail stores

Despite Apple CEO Tim Cook's recent visit to India, the company continues to have trouble with its expansion plans in the country. The Indian government has said that Apple will not be allowed to open retail stores, unless it agrees to its rule of selling at least some locally-sourced products in India.

According to Indian law, all foreign single-brand retailers have to sell 30% of goods that have been sourced locally in order to open stores in India. However, the government can make some exemptions for "state-of-the-art" companies with "cutting-edge technology" that can't be sourced locally. Initial reports had suggested that the Indian government would waive off the 30% sourcing norm for Apple under this category, but it has failed to be considered as the exception.  Read more...