US tech giant Apple, the iPhone maker, has told government officials that it plans to invest close to Rs 1,000 crore in setting up its online selling platform and opening three of its iconic retail stores across major cities over the next two to three years.
According to the ET report, the first store is likely to come up in Mumbai followed by Delhi and a third location is yet undecided.
It’s just not Apple but also the companies that assemble iPhones such as Foxconn and Wistron Corp that are in a list of ‘target companies’ being encouraged to set up more operations in India.
This development follows the Union Cabinet’s decision to relax foreign direct investment (FDI) norms for several sectors, including single-brand retail, to attract foreign investors, and boost economic growth, promote Make in India and generate employment along the way.
On 28th August 2019, the prime minister’s cabinet approved a slew of changes to the country’s foreign direct investment (FDI) norms, including new norms for single-brand retail, easing the investment path for brands like IKEA, H&M, Uniqlo, Furla, and Tommy Hilfiger, among other global companies.
All procurement made from India by a single-brand retailer will now be counted towards the mandatory 30% local sourcing norms, regardless of whether the goods are sold in India or exported.
The mobile handset industry in India, specially the smartphone segment, is expected to witness a surge in turnover during the next 4-5 years with the domestic market demand expected to soar from the current $25 billion to $80 billion by 2025, as per the National Policy on Electronics (NPE), 2019, India Cellular and Electronics Association (ICEA) had said.
