New Delhi: Apple CEO Tim Cook's India visit now appears fruitful as the government just ensured that his company can now open Apple stores in the country.
Cupertino major Apple has been looking to open its exclusive Apple Stores - a one stop destination for all things Apple - in India for over a year now. And the Prime Minister’s Office in a statement announcing new relaxations in FDI norms said, “It has now been decided to relax 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.”
Also in a latest development Apple must reapply under new rules announced if it wants a waiver from the condition that mandates single-brand foreign retailers to source 30% of their products from India, commerce minister Nirmala Sitharaman said.
“Local sourcing had a very noble objective. We cannot forget that. We need to protect small industries,” Sitharaman said.
“We concede that these definitions have to be simplified. The subsequent rules that will be notified will ensure that clarity will emerge (on these terms),” she added.
Apple had approached the Indian government to launch its own retail stores in the country. While the Department of Industrial Policy and Promotion (DIPP) had approved Apple’s application, it later got stuck with the International Business Professional (FIBP) over local sourcing norms that apply to FDI in single brand retail in India.
Other foreign smartphone brands have started assembling phones under the government’s Make in India project, but Apple imports all its products from China. Apple though did not appear to be in any hurry. “We are looking at India as a partner across, not just for any one area. Manufacturing is something logically we will look at. It is something we will look over time,” the Apple CEO said during his recent India visit.
According to the new FDI norms, Apple and any other brand would automatically be excused from local sourcing norms for three years, even if they do not classify under ‘state-of-art’ or ‘cutting edge’ technology category. In case the brand does meet the criteria under that category, it will be excused for another five years.
