After a long battle, it looks like Apple may finally get a pass from the government when it comes to the compulsory local sourcing rules. The decision will make way for the company to open single-brand retail stores in India.
To recap, Apple is looking to get an exemption from the administration when it comes to foreign direct investment. According to the law, the only way a firm gets immunity from the local sourcing rules is if it is trying to undertake single-brand retailing of products which have cutting edge technology and domestic sourcing is just not possible.
To that end, Apple had submitted a FDI application to the government a few months ago. The tech behemoth was later forced to submit the document again after the latter asked for some clarifications. The manufacturer has now given a detailed presentation to a committee on its technology, innovations, products and camera.
The strategy seems to have worked since sources claim that the committee has given Apple the green signal. As per PTI, the Department of Industrial Policy and Promotion (DIPP) is now getting ready to send the proposal for final approval to the Finance Ministry by early next week.
If approved, Apple will finally be able to set up wholly-owned stores in India. It’s been dependent on distributors such as Redington and Ingram Micro to get its products across so far. Previous reports had hinted that the company is looking to set up a flagship shop in the country along the lines of its well-known Fifth Avenue outlet in New York.