Xiaomi's application for single brand retail in India put on hold

China based smartphone maker Xiaomi had applied for single brand retail store license in India in March. Now a report published on Economic Times states that the government has put the company's single-brand retail application on hold.

The report further says that government is asking Xiaomi to submit additional documents for its application. The Department of Industrial Policy and Promotion (DIPP) will take Xiaomi's application to a 'cutting edge panel' after the company submits the necessary documents in order to be considered for exepmopn for the 30 percent sourcing norm.

Xiaomi last month applied for the license under the category 'state-of-the-art technology. At the time of applying for the license to open single brand retail store, Xiaomi stated that it should be exempted from the 30 percent sourcing norm for a range of products including WiFI amplifiers, Bluetooth speakers and Power Banks.

As per revised FDI (Foreign Direct Investment) norms, companies that bring cutting edge and state-of-the-art technology to India are eligible to open single brand stores in the country without meeting the 30 percent compulsory sourcing of materials locally. Once the license is approved Xiaomi will be able to open self branded retails stores across India.

Besides Xiaomi, another Chinese company LeEco has also applied for single-brand retail license in India.

Kaiser Bey

Kaiser is a tech enthusiast who likes to write, read and talk about tech. He dreams of going to Mars and never come back. We hope that you find his posts on AndroGuider helpful and informative