An official with the DIPP said that before recommending relaxation of norms in case of Apple, several factors such as the innovations that the company made, those that were followed by other manufacturers, etc were considered. The panel comprises the secretary of the Department of Industrial Policy and Promotion (DIPP), member of the NITI Aayog and representative of the administrative ministries including telecom and information technology. “It has recommended to exempt them from the local sourcing norms”.
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The Indian government is set to approve Apple’s request to open its own retail stores in the country and exempt the company from its domestic sourcing policy for foreign businesses. However, that is subject to local government approval. While up to 49% FDI is allowed through the automatic route.
For FDI beyond 51%, it is required that 30% of the value of goods be sourced from India, preferably from micro, small and medium enterprises, village and cottage industries, artisans and craftsmen. The items produced in India are likely to have online sales business-to-consumer model after getting the FIPB nod.
The official also said that during consultations it was also discussed that allowing some relaxation to Apple could also help the company bring its product prices down.
Apple sells its products through Apple-owned retail stores in countries such as China, Germany, the United States, the UK and France.
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Back in January, a report came out noting that Apple is wanting to open its first retail store in India. Chinese smartphone maker Xiaomi has also submitted an application to open stores in the country.
