#NewDelhi : The minister’s comments came days after the company got the green light to set up single-brand retail stores in the country by the Foreign Investment Promotion Board (FIPB) under the finance ministry. However, the FIPB had shot down the commerce ministry’s suggestion to waive the mandatory norm to source 30% of the product’s value locally.According to existing norms of the Department of Industrial Policy and Promotion (DIPP), 100 per cent foreign direct investment (FDI) has been allowed for single-brand retail, on the condition that manufacturers source at least 30% of the goods’ value locally. This rule has, however, been relaxed for companies which can bring “cutting edge” and “state-of-the-art technology”, subject to government approval.
However, the FIPB led by Economic Affairs Secretary Shaktikanta Das had suggested proper guidelines be laid down by DIPP to define what constitutes the two factors, remaining unconvinced of Apple’s ability in this regard.
Apple had earlier stated its difficulty in meeting the norms, since it does not have any manufacturing unit in India. The issue will be closely watched by two other Chinese phone makers from China – Xiaomi and LeEco, who have also requested a waiver of the sourcing norms. However, Xiaomi has reportedly written to the DIPP asking that its request to waive the sourcing norms be ignored since it already has a manufacturing presence in the country.
A week earlier, Apple Chief Executive Tim Cook visited India and met Prime Minister Narendra Modi to discuss the possibility of selling refurbished apple phones in the country. Domestic mobile phone makers had raised objection to this plan citing loss in sales since Apple products would be available at roughly half the current price.
Apple currently sells its products in India through arrangements with other retail outlets. Its sales in India crossed the $1 billion mark for the first time in last year, according to filings with the registrar of companies.
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