Moneycontrol
May 25, 2016 03:17 PM IST | Source: CNBC-TV18

Apple can set up stores without sourcing waiver: FIPB

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.

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