Article;
Gifford, C. (2020). Apple set for new sales in India as foreign direct investment rules are relaxed. Retrieved 20 November 2020, from https://www.theneweconomy.com/business/apple-set-for-new-sales-in-india-as-foreign-direct-investment-rules-are-relaxed
Following the Indian government’s directive to relax some of the foreign direct investment (FDI) norms for single brands, the article discusses the step taken by Apple to increase investments in the country. Apple aimed at boosting sales in the Indian market after the trade war between the US and China affected its sales. One of the key attractions for Inc in the Asian market was lifting the requirement for single brands. Apple was initially forced to use third party offline retailers and e-commerce platforms such as Amazon to reach the market. However, it has now expressed intent to continue with investments in retail stores.
Increased FDIs in India give Apple the much-needed authenticity of its products, facing numerous challenges, including the dilution of its brands because of the heavy discounts offered by third parties keen on boosting sales. Apple sets its online sales and other physical location, allowing it to take advantage of the highly attractive Indian market, which is also believed to be the fastest-growing in the world. Further, it gives Apple to compete with other smartphone brands available in the Indian market, including Xiaomi from China that has benefited due to lack of competition. The company believes that it will be easier to do business in India because of the new reforms. For the Indians, the company’s increased FDIs implies that they will enjoy a boost in the economy and increased opportunities for jobs and value for their money. It is also positive for the overs of the Apple brand as proximity ensures better offers than importing abroad.