Doing business in developing countries is never straightforward, but India needs to make life easier for foreign firms. Apple is tussling with telecoms officials and antitrust watchdogs in the country. The US company's growing list of headaches undercuts New Delhi's big push to open up the world's fifth-largest economy to multinationals.

The Cupertino giant's stand-off with the telecoms ministry kicked off last week when the agency issued a directive for all handset-makers to install the controversial Sanchar Saathi app within 90 days on all new devices. The move is meant to help authorities track stolen phones and combat "serious endangerment" of cybersecurity and comes just weeks after a deadly terrorist attack in India's capital. But it has sparked concerns about government surveillance on the country's 730 million smartphones. The furore forced the telecoms minister to clarify the app can be deleted at any time.

Even so, Apple intends to defy the order because of privacy and security issues, including for its iOS operating system, Reuters reported on Tuesday, citing sources. Management bandwidth is also getting sucked up in a legal battle with the Competition Commission of India, which last year found the US firm led by Tim Cook had engaged in "abusive conduct" through its app store: Apple is challenging a potential fine of 10 percent of its global turnover, implying a maximum hit of $38 billion. The amount is so large because new antitrust laws target the firm's global topline rather than its local sales.

The $4 trillion company has the resources to fight these battles, but it's a bad advert for those sitting on the sidelines. That a company that now makes one out of every five, iPhones in India is facing these headaches highlights t he government's struggle to really make things easier. That takes the sheen off Prime Minister Narendra Modi's headline reforms, including an overhaul of labour rules introduced last month.

India needs many more companies like Apple. It needs to create jobs and boost the share of manufacturing up from 17 percent of GDP. Net foreign direct investment into the country dropped 96 percent to $400 million in the year ended March 31 compared to the previous year, due to a repatriation of funds by foreign investors and outbound investments by domestic firms.

Other multinationals that are expanding in India include Alphabet's  Google, which is pouring $15 billion into data centres. Officials have also tried to entice Tesla to set up a factory, offering land in Maharashtra, per local media reports. Apple's troubles spotlight why many may choose to hold back.

Apple does not plan to comply with an Indian government mandate to preload smartphones with a state-owned cyber safety app and will convey its concerns to New Delhi, Reuters reported on December 2, citing three unnamed sources familiar with the matter.

India's telecoms ministry on November 28 confidentially ordered companies including Apple, Samsung and Xiaomi to preload their phones with an app called Sanchar Saathi, or Communication Partner, within 90 days, Reuters reported on December 1, citing the order. The app is intended to track stolen phones, block them and prevent them from being misused.