Local sourcing waiver for Apple likely

Though the Finance Ministry is against exempting Apple from local sourcing for its single-brand stores, Commerce Minister Nirmala Sitharaman on Monday favoured reviewing the case.

The minister, who said a consensus on the issue should be reached soon, however, said she was not in favour of Apple's other proposal to import and sell refurbished phones in India.

Earlier, a panel headed by the Secretary of the Department of Industrial Policy and Promotion suggested that Apple be exempted from local sourcing rules as a pre-condition to set up single-brand retail stores in India since Apple’s proposal meets the definition of 'cutting edge technology'. But the Finance Ministry rejected it."Now, the Finance Ministry has already taken a different position, we will certainly talk to them... We will talk and make sure we come out with some decision," she told reporters here.

Explaining her position on Apple's proposal, the minister said, "We are not talking about changing the rules for manufacturing. We are just saying let's be clear on single-brand retailing.”

Nirmala said talks will be on whether there is a need for separate guidelines on local sourcing pertaining to the waiver on ‘cutting-edge technology’ and what constitutes such high-end technology. However, she said these debates will not be stretched to unrelated segments like fashion.

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. The firm also sought permission to import refurbished phones and sell in India.