It looks as though if Apple wants to open up shop with a brick and mortar store in India, everything will need to be locally sourced. The company has been having a tough go of it as far as trying to establish a foothold in India due to regulatory roadblocks.
The most recent of roadblocks saw Apple not get in on a sell exemption that would allow the company to sell products not made India in stores. Basically, Apple failed to meet qualifications of having 30-percent of the value of its goods from India that would get it in on the exemption. Prior to that, Apple was blocked from selling refurbished phones because of concerns it could contribute to e-waste in the country.
Apple is serious about establishing operations in India with CEO Tim Cook meeting with Prime Minister Narendra Modi. The company is also getting started on establishing a development center in Hyderabad with a sizable $25 million investment. Even with the investment and meeting with the upper reaches of government, Apple can’t avoid regulation that would make expansion difficult.