Nirmala Sitharaman revives Apple's India hopes
On Apple's FDI proposal Sitharaman said that for the high-end technology they will not mind to waiving of 30% local sourcing norms where there is a policy regarding single brand retail.
Apple could get exemption from the 30% local sourcing norm for single brand retail. Minister of State for Commerce and Industry Nirmala Sitharaman said she will take up the norm with Finance Ministry with regards to Apple.
"We took a line that we wouldn't mind waiving off the local sourcing norm for Apple's high-end products. Finance Ministry has taken a different line. We will talk to them," she said.
In Apple's FDI proposal Sitharaman said that for the high-end technology they will not mind to waiving of 30% local sourcing norms where there is a policy regarding single brand retail.
Nirmala Sitharaman's comments came days after the finance ministry asked the iPhone maker to meet rules that mandate foreign retailers to sell at least 30% locally-sourced goods if it wished to open stores in the country.
The minister, however, said she was not in favour of relaxing rules for Apple to sell refurbished second-hand phones in India.
“We are working very closely with the industry where there is a danger of loss to the industry due to dumping from China,” Sitharaman added.
Sitharaman said this during a conference in which she highlighted the list of achievements of the government during the last 2 years.
This comes at a time when Apple announced that it will set up its exclusive retail outlets in India.
Earlier, it was reported that the government was contemplating on waiving the 30% mandatory local sourcing norms for Apple to set up shop in India.
This could potentially reduce the price iPhones in India as it can now get the products sourced from its production facilities in China, which are at a much cheaper cost.
The government has however been keep for Apple to set up its manufacturing units in India. Prime Minister Narendra Modi in his recent meeting with Apple's CEO Tim Cook pushed for Apple towards its 'Make in India' initiative instead of the 'refurbished' iPhones strategy.
(With inputs from Reuters)