It is more likely that the real reason for Apple's rejection is the whim of some high level bureaucrat ("IAS officer"). It may not even be corruption, even righteous bureaucrats are often stupid. The amount of red-tape in India is astounding.

"While import substitution policies might create jobs in the short run, as domestic producers replace foreign producers, economics theory shows that in the long run output and growth will be lower than it would otherwise have been. This is because import substitution denies the country the benefits to be gained from specialisation and foreign imports. The law of comparative advantage shows how countries will gain from trade. Moreover, protectionism leads to dynamic inefficiency: Domestic producers have no incentive from foreign competitors to reduce costs or improve products. Import substitution can impede growth through poor allocation of resources, and its effect on exchange rates harms exports."

Free trade aside this is a smart move for India: Apple has saturated the markets in the west and needs Asian consumers for future growth. It's been shut out of China despite being based there from a production standpoint. If India can force Apple to shift production to India in exchange for access to its consumers that would be a great coup.

It's been a few years since last I was in China, but I remember visiting several Apple flagship stores and seeing iPads and iPhones everywhere on the street.

If Apple does not qualify as "cutting-edge technology" then what does?

If a store is selling to consumers, it's inherently going to be not at the very edge of development.

If Apple can't be approved for this exemption, this exemption makes no sense.

We're talking about device manufacturing, which isn't exactly scarce in APAC. Apple already manufacturers chargers and other items in India.

IKEA applied and lost. LeEco and Xiaomi have also applied, and my guess is they won't get it as well on the same grounds.

When I think cutting-edge, I usually think highly specialized medical or military tech - things that a only a small set of people can design/build.

But, it is a pretty flimsy phrase and could be open to abuse. Which is why I asked if other consumer electronics companies have succeeded/failed to obtain a waiver.

Sure, that is the absolute cutting edge.

But you don't need retail stores to sell specialized medical or military technology.

Hence the visit from the ceo of apple to the pm.