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This does not make sense based on my own experience of launching phones in India with Intex, Spice and a few other Indian manufacturers. 'Indian' smartphones are all made in Shenzhen. There is no smartphone manufacturing in India. So how can Intex and Spice sell their phones in India if their phones are made in China like the iPhone is?

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Vendors like Spice and Intex are Indian companies. Companies can sell imported products in India, they just have to pay import duty on it.

India have FDI restrictions in retail sector to prevent big box retailers like Walmart from destroying local retailers.

Most of the popular brands including Apple already sell in India, but they have to partner with a Indian retailer to do so.

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