The FIPB has told Department of Industrial Policy and Promotion that there isn‘t enough material on record to justify the 'state-of-the-art tech' claim to exempt Apple from sourcing locally.
CNBC-TV18 learns the Foreign Investment Promotion Board (FIPB) has made it clear that Apple can set up stores in India with the rider that the Cupertino, California-based company won't be given an exemption on the 30 percent local sourcing rule.
The Department of Industrial Policy and Promotion (DIPP) had been asked to come out with a clear definiton on what is 'state-of-the-art” and 'cutting-edge technology' --- both names under which a company could be exempted from sourcing locally.
Now, the FIPB has told DIPP that there isn’t enough material on record to justify 'state-of-the-art tech' claim to give Apple the waiver.
Also, the FIPB wants to ensure that giving a waiver to Apple wouldn't form a precedent. It wants the government to review the single-brand FDI policy.
In November, the government relaxed rules governing foreign investment in single brand retail for companies bringing in what it called “state-of-the-art and cutting-edge” technology.