Comments
US-based technology major Apple is back in talks with the Indian government to examine conditions for opening up its stores in the country.
Senior officials from Apple's South Asia team are scheduled to meet DIPP Secretary Ramesh Abhishek this week to discuss details of the new Foreign Direct Investment (FDI) rules in single brand retail and the company's future prospects, a government official told BusinessLine.
Apple, which has been keen to open its stores in India and had also applied to the government for relaxation in domestic sourcing norms earlier this year, had withdrawn from talks since the FDI rules for single brand retail were changed in June.
Domestic sourcing norms
“We are expecting the meeting on Tuesday to focus on opening of Apple stores to be revived in this week's meeting," the official said.
Apple will want the DIPP to explain the latest changes in mandatory domestic sourcing norms for single brand retail brought about in June, especially the provisions related to exemptions for products meeting the requirements of cutting edge technology.
The FDI rules for single brand retail call for mandatory sourcing of at least 30 per cent inputs from domestic companies.
The BJP government had announced relaxations in the mandatory domestic sourcing provisions for items with ‘cutting-edge’ technology without any time limit, but in June, changed the rules indicating that the exemption would be available only for three years.
Cutting edge technology
“There are two points on which Apple would want clarity. One is related to the number of years exemption from local sourcing would be given to cutting edge technology products. The second and more important clarification would be regarding what constitutes cutting edge," the official said.
Apple is confused about what constitutes ‘cutting-edge’ because its products were put in the category by an expert panel headed by the DIPP Secretary set up earlier this year (before the FDI rules were changed) but the Finance Ministry rejected the panel’s certification.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.