CommMin to press FinMin on local sourcing waiver to Apple

| | New Delhi
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CommMin to press FinMin on local sourcing waiver to Apple

Tuesday, 31 May 2016 | PTI | New Delhi

Commerce Ministry will press the Finance Ministry to reconsider its rejection of local sourcing waiver to Apple Inc for opening single-brand stores here, but won’t allow the iPhone maker to import refurbished mobiles for sale in India.

The Finance Ministry has rejected relaxing the 30 per cent domestic sourcing norms, as sought by iPhone and iPad maker as a pre-condition for bringing in FDI to set up single-brand retail stores in the country.

Commerce and Industry Minister Nirmala Sitharaman on Monday said her Ministry has taken a line that the local sourcing requirement can be waived off for high-end technology products and she would again approach the Finance Ministry on this.

“Specifically for the high-end technology products, we took a line that we would not mind waiving the 30 per cent local sourcing requirement...Now the Finance Ministry has already taken a different position, and we will certainly talk to them.

“I want more clarity on that...We will talk and make sure that sooner we will come out with some decision. If there is a concern, I want to address that,” she told reporters here.

The US-based giant has sought exemption on the ground that it makes state-of-the-art and cutting-edge technology products for which local sourcing is not possible.

Apple CEO Tim Cook was recently in India and in his meeting with Prime Minister Narendra Modi discussed the possibility of manufacturing and retailing in India, among various issues. Currently, Apple products are sold in India through its authorised resellers and other retailers.

Explaining her position on Apple’s proposal, Sitharaman said, the Ministry is not talking about changing the rule for manufacturing and “we are just saying let’s be clear on single-brand retailing”.  

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