Apple Inc's proposal to set up wholly-owned retail stores has been approved by the Foreign Investment and Promotion Board, but it has not succeeded in getting a waiver of 30 per cent local sourcing norms, reports today said.
''Apple's application has been cleared but it will have to meet the sourcing norms. The official communication on the matter will be out in a couple of days,'' Business Standard cited a senior official as saying.
The development comes a week after the Cupertino, California-based company's chief executive Tim Cook visited India and met Prime Minister Narendra Modi.
According to current DIPP norms, for single brand retailing, 100 per cent FDI has been allowed provided manufacturers source at least 30 per cent of the value of goods locally. However, this rule has been relaxed for companies which bring cutting edge and state-of-the-art technology to India, subject to government approval.
A panel comprising DIPP secretary, a member of the NITI Aayog and representatives of the ministry concerned decides on giving exemption from sourcing norms on a case-to-case basis. As per reports, this panel has given its approval to the iPhone maker to set up its own stores.
As per the norms, the application then goes to the FIPB, which is led by economic affairs secretary Shaktikanta Das. Sources said that FIPB has kept the sourcing rider intact in Apple's case.
For multi-brand retailing, the government has allowed FDI up to 51 per cent and has mandated that at least 30 per cent of the value of procurement of manufactured / processed products purchased, be sourced from small Indian enterprises.