New rules mean Apple can begin selling devices online in India

Apple Inc will finally be able to start online sales of its devices in India after the country relaxed strict rules to enforce local production of products.

For years the US tech firm has battled against India’s rule that forces company such as Apple, who fall in the single brand retail trade (SBRT) category, to source 30 per cent of its production locally.

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The restriction posed a problem for electronics brands because most of its devices and components are manufactured in China, as well as the fact it would be difficult to procure the correct goods in India to meet the 30 per cent condition.

The Indian government has now said all procurement made from India by SBRTs will count towards local sourcing,  irrespective of whether the goods procured are sold in India or exported.

Apple has been in talks with officials in India to open its own stores in the world’s fastest-growing smartphone market for quite some time.

Local manufacturing would help the California-based company avoid import duties of 20 per cent, and further grow its market share and India revenue.

With escalating trade tensions damaging ties between the U.S. and China, India’s new investment rules could bring a much-needed boost to Apple, allowing it to grow sales in the country.

Long-term, it’s possible growth in Apple’s Indian supply chain would also reduce its dependancy on a potentially tempestuous Chinese business.

Apple will begin selling its iPhone, iPads and Apple Mac computers online in the coming months.

An unnamed source cited by Bloomberg added that Apple is also considering opening its first company-owned brick and mortar store in Mumbai, likely open to next year.

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