Besides Apple, companies like Chinese smart phone makers Xiaomi and LeEco have also seeking exemption from the local sourcing norms. Currently, Apple do not have any wholly owned store in India and therefore we find them selling products through distributors like Redington and Ingram Micro. We find Apple Inc’s plan to set up wholly owned retail stores in India seems to be difficult, as the company failed to give valid reasons for asking for relaxation under the mandatory local sourcing which is applicable for foreign direct investment in single-brand retail.
A government official told Indian Express that the Foreign Investment Promotion Board, which comes under the Ministry of Finance, has approved the company’s proposal but do not support the exemption. The official said that there was not enough material on record to justify providing Apple the relaxation for local sourcing norms. Apple had to provide enough material on record to justify the relaxation, which they couldn’t. The official added that there are many companies involved in producing smartphones and tablets, which may ask for similar approval, but that cannot be done. iPad might have been termed cutting edge 7-8 years ago, but the same can’t be said now.
Now, as other companies like Chinese smart phone makers Xiaomi and LeEco have also sought exemption from the local sourcing norms, therefore they have appointed a special three-member panel within the Department of Industrial Policy and Promotion to consider their proposals. This panel has recommended that Apple be exempted from the sourcing guidelines. Last month after a presentation by the Cupertino-based electronics manufacturer, a committee which was headed by the DIPP secretary, had concluded that Apple’s products were indeed progressive and therefore recommended that Apple should be given the exemption which they have asked for.
