The Indian government has decided to recreate the economy by easing the rules that govern the foreign industries. Amongst the industries, retail and travel are also considered. Does that mean smartphones will be cheaper? Yes.
A few days back there was a news that Apple phone prices were hiked. But, if the government decides to ease the foreign policies governing these companies, there’s a high chance that Apple phone might receive a price slash.
As mentioned earlier, travel would also be influenced. Air India, the national carries with a not-so-good impression on its travelers can now be bought up to 49%!
This would open up Indian economy to foreign companies. The government is taking this step because foreign investment reached a whopping amount of $60 billion i.e. 8% higher than the previous year. The Government also said that the changes would bring in a lot of growth in terms of investment, income and employment.
According to Forrester, 1 in 20 active smartphones in the company belongs to Apple even though Apple phones are sold only by third-party Apple vendors. Apple is definitely going to make benefits from this rule.
The foreign companies had requested the Indian government to ease the foreign policies as retailers obtain 30% of the value of the product sold. Apple buys and assembles its product in China. Thus, 30% is not a number which can be easily met by them (especially quarterly).
In simple words, if Apple sold products worth $100million in India, the company should buy products worth atleast $30 million of Indian made goods.
Summing up the post in simple words, easing foreign companies policies would allow the company to sell more products and bring in foreign currency. This also means that imported foreign goods will be available at a good price.
News Source: The New York Times