India rejects Apple’s plan to import used iPhones

India has rejected a plan by Apple Inc to import used iPhones, government officials said on Wednesday, a blow to the U.S. Tech giant that has been seeking to revive waning sales of its flagship smartphones.

Apple sells what it calls refurbished iPhones at a discount in some countries, including the United States. Extending this practice to India would have likely helped it increase its share in one of the world’s fastest growing smartphone markets against competitors with much cheaper offerings.

But India, which is pushing a ‘Make in India’ initiative to boost the competitiveness of its manufacturing sector, rejected the proposal citing rules against importing used electronics.

“India does not encourage dumping or recycling of hazardous materials,” N.N. Kaul, a spokesman for the telecom ministry said.

Apple’s proposal was opposed by domestic phone makers who claim selling refurbished iPhones — devices that have been returned by buyers or repaired to factory condition after damage — would breach India’s anti-dumping rules. The Consumer Electronics and Appliances Manufacturers Association had written to India’s telecom ministry to stall the move.

An Apple spokeswoman in Singapore did not immediately respond over the news. The news comes at a time when Apple posted its first-ever drop in iPhone sales in China, one of its most important markets.