After the Indian Government encouraged Apple to expand investment in India,  they're now demanding that Apple (and Google) provide Indian users with direct access to a government app store.  According to people familiar with the matter, Government officials are demanding that companies such as Apple and Google launch the government-backed GOV.in app store within their respective app stores .

Google has already expressed opposition to the proposal, and Apple is not expected to give in easily. Sources said that at the meeting, the Indian government even discussed the possibility of taking policy enforcement or legal measures to force the two technology giants to compromise.

The Indian government hopes to use technology to expand the coverage of public welfare services while promoting the popularization of official applications on smartphones . The government also wants these applications to be pre-installed on new devices and downloaded through third parties without triggering "unknown source" warnings.

Currently, various Indian government apps are available separately in Apple and Google's app stores. But officials believe that if the GOV.in app suite can be available in stores as a whole , its usage could increase significantly. For more, read the full Bloomberg report.

It may start off as a Government app Store and then allow Indian developers to bypass the Apple and Google stores altogether. Apple should halt all plans for further expansion in India until the government backs off this demand. How can any U.S. company be thinking of investing in India if they can't trust the government?