Apple’s retail aspirations in India hit potential snag: report

Apple’s effort to build stores — and its brand — in India reportedly may have hit a snag.

The Wall Street Journal reported on Thursday, citing government sources, that Indian officials have decided not to exempt the company from laws mandating that retailers in the country use a certain percentage of local manufacturing sources. That ruling could endanger the company’s efforts to build more standalone Apple stores in a country they view as a critical market.

{mosads}Indian laws require majority foreign-owned retailers who want to open their own stores — rather than sell through other channels — to source at least 30 percent of their materials from Indian companies.

There is an exception for products that would otherwise not be in the country, according to the Journal. A panel that reviews applications for exemptions from the rules reportedly approved Apple’s initial proposal, but that decision was overruled by more highly ranked authorities.

A denial could stand to make Apple’s attempts to penetrate the Indian market more difficult. The company could expand awareness of its brand by building the standalone stores, which sell a variety of Apple products and offer other services to users.

Tim Cook, the company’s CEO, has been aggressive in courting the Indian government as the company looks to expand its presence in the market.

He met with Indian Prime Minister Narendra Modi on Saturday and discussed, among other topics, “the possibilities of manufacturing and retailing in India,” according to a statement from Modi’s office.