​​​
  1. Apple, IKEA to benefit as Modi government eases sourcing norms for FDI in single-brand retail

Apple, IKEA to benefit as Modi government eases sourcing norms for FDI in single-brand retail

The government on Monday announced that it is relaxing local sourcing norms up to three years and a relaxed sourcing regime for another five years for entities undertaking single brand retail trading of products having ‘state-of-art’ and ‘cutting edge’ technology.

By: | New Delhi | Published: June 20, 2016 5:54 PM
Showing interest in making Apple products in India, Tim Cook had last month discussed with PM Narendra Modi the “possibilities of manufacturing” and tapping the young talent pool in the country. (PTI) Showing interest in making Apple products in India, Tim Cook had last month discussed with PM Narendra Modi the “possibilities of manufacturing” and tapping the young talent pool in the country. (PTI)

Has Apple CEO Tim Cook’s India visit worked magic for the iPhone maker? With the Narendra Modi government relaxing local sourcing norms for single-brand retail, Apple is expected to benefit. Other single-brand retailers like furniture giant IKEA also stand to benefit.

The government on Monday announced that it is relaxing local sourcing norms up to three years and a relaxed sourcing regime for another five years for entities undertaking single brand retail trading of products having ‘state-of-art’ and ‘cutting edge’ technology. This lcears the way for Apple to open its stories in India.

“We will inform Apple to indicate whether they would like to avail new provisions,” Rajesh Abhishek, secretary of the Department of Industrial Policy and Promotion, told a news conference.

ALSO READ: Apple’s next big software improvements

Showing interest in making Apple products in India, Tim Cook had last month discussed with PM Narendra Modi the “possibilities of manufacturing” and tapping the young talent pool in the country.

Government sources have in the past said that India is keen to get Apple to start making products in the country in what would be a boost for PM Modi’s “Make in India” manufacturing push.

Tim Cook is trying to capitalise on growth prospects for India, where a billion new smartphones are projected to be sold in the next five years as consumers increase their incomes and adopt new technologies.

Cook has likened India to China a decade ago, as Apple faces slowing growth in established markets. India, with 1.3 billion people, is a potentially-massive market for Apple and peers including Google, Amazon.com and Facebook.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Go to Top