In May 2017, the Indian Government approved Apple’s request for tax exemption for its suppliers after it established its own manufactory. This incentive will enable Apple to meet increasing demand for its products and will make India a major hub of manufacturing for smartphones.
After the reformation of India’s foreign investment policy in 2012 single-branded foreign retailers have been entering its dynamic market, including fashion brands H&M (SE:HM-B) and Massimo Dutti. Japan-based Uniqlo is delaying its entrance due to space unavailability but will enter the Indian market in 2019.
More than 50 global retailers, mostly US and Singapore brands, are planning to enter the country before the end of the year, according to retail solutions provider Franchise India. The easing of foreign direct investment policy is expected to benefit India in the long term. With its burgeoning middle class and rising incomes, India has already replaced China as the world’s most sought after retail market.