Govt to take a decision on Apple’s proposal
The Dollar Business Bureau
The government of India will soon take a decision on Apple’s proposal to set up single-brand retail stores in India.
A senior government official said that they are looking at Apple’s proposal and are planning to take decisions about setting up single -brand retail stores in the country.
Apple has requested for an exemption from the local sourcing norms as the company makes cutting edge technology products and for these products, local sourcing is not possible.
The whole proposal is being considered by the Finance Ministry. The ministry will take into consideration whether the company can be provided with an exemption from the 30 percent local sourcing norms for undertaking the single brand retailing of products in India.
For such trading, the single brand retail stores also need the use of e-commerce platforms.
Presently, 100 percent FDI is allowed in this sector. However, beyond 49% the permission of Foreign Investment Promotion Board's
(FIPB) is required.
In countries like Germany, China, US, France, UK and others, Apple products are sold through their own retail stores.
However, in India, there is no wholly owned retail store and all the products are sold through distributors like Ingram Micro and Redington.
The company has filed a proposal asking for the permission of the single brand retail stores in January. But due to certain gaps in the application, the Department of Industrial Policy and Promotion (DIPP) has requested for more information from the company.
Due to this, the company has resubmitted its proposal in March.