Say NO to Apple Stores if they don't accept 30 % Local Sourcing Norm

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Recent reports in the Press state that while the Prime Minister and the Finance Ministry have turned down the demand of APPLE CEO Tim Cook to be allowed to open Apple Retail Stores without adhering to the condition of 30 % local sourcing, Ms. Nirmala Sitharman (Minister of State for Commerce & Industry) is determinedly pushing Ministry of Finance to relax this condition for Apple.

This is absolutely inexplicable and unnecessary for the following reasons :

a) What will happen if Apple does  not open its retail stores - precisely NOTHING. The argument that India will lose out on high tech products is not only specious but downright silly.  

Apple is interested in selling its products to a huge market like India and if it cannot sell through its own retail stores it will sell through other sellers and distributors.

After all,  aren't Apple Products of all hue and variety freely available in India today - be it Macs, IPods, IPhones, IPads, IWatch etc. despite there being no Apple Retail Stores currently in India ?

b) India has nothing to gain by allowing these stores to open without 30 % local sourcing because it will neither add to employment or to any technology up-gradation as was rightly pointed out  by Mr. Arun Jaitley in Japan,  when asked about this matter.

On the other hand Apple has everything to gain - close proximity access to the world's largest consumer market and  a much fatter margin of profit if they sell from their own retail Stores.

So who is the ministry of Commerce working for - India or Apple ?

c) Finally,  when shall we develop the spine to stand up to the bullying by American and European Corporates who just do not care to respect Indian laws, rules and regulations ?

It is amazing that one of the strongest Minsters in a BJP-led government who, otherwise,  takes such a strongly nationalistic stance is now willing to prostrate her ministry before the Apple CEO.

Dear Ms. Sitharaman - please do not make India bow to the commercial interests of a company from the US, just because it is from the US and when there is no gain whatsoever to India, by doing so.

I appeal to you to stop lobbying the Finance Ministry for relaxing the 30 % sourcing norms for Apple Retail Stores.  As a strongly nationalistic person you must insist that Apple has to respect Indian laws and regulations.


hemendra k. varma


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