Apple in India: iPhone and iPad maker may get exemption from a mandatory local sourcing rule in India for foreign direct investment (FDI), which will enable the company to open single-brand retail stores in the country, sources said on Wednesday.
A government committee has recommended that the tech giant’s technology is fit to be called “cutting-edge technology”, which means it can be exempted from the rule on mandatory local sourcing (at 30%), the sources said. A final call, however, will soon be taken by the finance ministry, based on the committee’s recommendations, they added.
Chinese smart phone maker Xiaomi and tech giant LeEco have also applied to the Department of Industrial Policy and Promotion (DIPP) for such concessions, which are yet to be taken up by the committee, headed by DIPP secretary Ramesh Abhishek.
According to the FDI norms, the government may relax the mandatory local sourcing norms for entities undertaking single-brand retailing of products if they have cutting-edge technology and where local sourcing is not feasible.
Currently, 100% FDI is allowed in single-brand retailing, although companies are mandated to obtain FIPB approval if the FDI limit exceeds 49%.
