Way cleared for Apple stores in India as government relaxes FDI rules

The Government of India announced refreshed Foreign Direct Investment (FDI) policy, which now allows for 100 percent FDI for retail trade and eight other sectors. The key change in the FDI policy has cleared the way for Apple to set up it's own exclusive Apple Stores in India.

According to the new FDI norms, all foreign owned single brand retailer will get three-year sourcing grace period (earlier required all foreign single brand retail stores to source 30 percent of their goods within the country), and an additional five year grace period for selling products with "state of the art" and "cutting-edge" technology. 

Apple has been trying to launch its exclusive stores for its products in the country for more than a year now. The company approached the government to open its own stores, and requested the government to get exemption from local sourcing under state of the art- category products, which was denied.

However, now Apple or any other foreign brand would be exempted from sourcing 30 percent of their components locally for up to three years. If a foreign company/brand meets the requirements of cutting edge technology category, will get exemption for additional five years.

Commerce Minister Nirmala Sitharaman said Apple will now have to submit a refreshed permission to the government to open its retail stores in the country. Currently in India, Apple sells its products via distributing partners like Redington India, Ingram Micro and retail chains of Reliance Industries. By selling its products through its own brand stores, Apple will be looking forward to increase its current two percent market share in the country, which is the second largest smartphone market in the world.

Along with Apple, the refreshed FDI policy will help Chinese smartphone makers Xiaomi and LeEco, who are also trying to open their own brand retail stores in India. In addition to retail trades, the refreshed FDI policy will also apply to food products, defense, civil aviation, pharmaceuticals and broadcast sector.

Source

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