The Indian government relaxed regulations that previously barred retail companies from establishing operations.
(CCM) — On Monday, the Indian government announced new changes to foreign investment regulations that had previously made it difficult for retail companies to establish operations in the country. Under the new directives, foreign retailers will be exempt from previous requirements to source 30% of product materials from local producers. Exemption periods will last for three years, with the possibility to extend up to eight years for companies selling "cutting edge" products. The announcement comes as part of a sweeping reform movement that aims to stimulate the Indian economy by creating more jobs and improving internal infrastructure.
The government's new policies pave the way for companies such as Apple and IKEA to resubmit applications to expand retail operations onto Indian soil. Previous bids by the Apple to circumvent local sourcing regulations and enter the mobile market by selling refurbished iPhones were rejected by the government and faced strong opposition from domestic phone makers. Other recent expansion efforts by the tech giant include a petition to bring manufacturing operations onto Indian soil as well as the announcement of a new Design and Development Accelerator that aims to foster the education of local developers and refine their technological skills. Apple has yet to officially comment on India's new legislations.
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