Despite concerns around local sourcing, smartphone maker Apple will go ahead with its plans to set up retail stores in India. The tech giant has seen 50 per cent growth in its revenues from India at a time when its global fortunes are on the decline.

“We’re looking forward to opening retail stores in India down the road, and we see huge potential for that vibrant country,” Tim Cook, CEO, Apple Inc, said during the earnings call.

The Indian government last month reduced hurdles for Apple’s retail store plans by deciding to relax local sourcing norms up to three years for foreign companies and an additional five years for entities undertaking single-brand retail trading of products having ‘state-of-the-art’ and ‘cutting edge’ technology. This would give Apple eight years of time before it starts local sourcing in India.

During his visit to India in May, Cook had met Prime Minister Narendra Modi to discuss the possibilities of local manufacturing as well as plans for opening single-brand retail stores.

Growing India revenue Cupertino-based Apple’s revenue has been under pressure for the last two quarters, with revenues in the quarter ended June 30 declining 14.5 per cent to $42.4 billion. India revenues, on the other hand, grew at an astonishing pace.

“India is now one of our fastest growing markets. In the first three quarters of this fiscal year, our iPhone sales in India were up 51 per cent year-on-year,” Cook said.

“We just announced a first-of-its-kind design and development accelerator to support Indian developers creating innovative applications for iOS, and we opened a new office in Hyderabad to accelerate maps development. We’re looking forward to opening retail stores in India down the road, and we see huge potential for that vibrant country,” Cook added.

Apple has been taking various measures to up its play in the Indian market. These include expansion of its distribution in the country. Considering the price sensitivity in the country, the iPhone-maker in the last one year started offering discounts and financing plans in the country in addition to leasing options for enterprise customers.

Its plan to sell pre-owned certified phones, however, has hit a wall with policy makers not keen on allowing refurbished phones to be sold in the country. This has not dampened Apple’s bet on India.

“On a personal note, during the past quarter I visited China and India, and I am very encouraged about our growth prospects in those countries,” Cook said.

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