Apple makes out case for exemption from local sourcing norms

iPhone and iPad maker Apple has given a presentation to the DIPP Secretary-headed panel on why its products should be considered ‘state-of-the-art’, ‘cutting edge’ and thus exempted from mandatory local sourcing norms.

The US-based company has sought nod from the government on setting up single-brand retail stores in the country.

As per the foreign direct investment (FDI) norms, the government may relax the mandatory local sourcing norms for entities undertaking single-brand retailing of products having state-of-the-art and cutting edge technology and where local sourcing is not possible.

“The DIPP would soon take a call on the company’s application,” sources said.

The government had set up a committee to decide whether a product is state-of-the-art and can be eligible for exemption from the mandatory local sourcing applicable for FDI single brand retail trading.

The committee is headed by Secretary in the Department of Industrial Policy and Promotion (DIPP) Ramesh Abhishek.

At present, 100 per cent FDI is permitted in single brand retail sector but the companies are required to take FIPB permission if the limit exceeds 49 per cent.

The company sells its products through Apple-owned retail stores in countries including China, Germany, the US, the UK and France.

Apple has no wholly-owned store in India and sells products through distributors such as Redington and Ingram Micro.

Chinese smartphone maker Xiaomi too has submitted an application to open stores in the country.