Ball is in Apple’s court now as India tweaks local sourcing norms

Apple may set up single-brand retail stores in India as the government has overhauled its local sourcing norms, which were a dampener for the iPhone maker.

Reportedly, the Indian government has reached out to Apple over setting up single brand stores in the country as exemptions have been made.

Apple has been informed about the changes in sourcing conditions relating to 'cutting edge technology' in single-brand retail, the officials told ET.

"The policy is in the public domain for anyone to access. However, a call was made to the company... Apple now needs to tell us if it wants to enter India under the new norms," a senior government official told ET.

As per the tweaked norms, single-brand retailers selling 'state of the art' or 'cutting edge technology' products will not have to meet the condition for up to three years from the commencement of operations.

Apple, which sees India as a bright spot and wants to acquire a share of the smartphone segment, won't have to submit a new application.

Apple’s domestic sales crossed $1 billion mark in FY 15 and presently it sells its products through franchisee-owned stores.

Meanwhile, as per new regulations, any foreign investment beyond 51% in single-brand retail requires 30% of the value of goods to be sourced from India, preferably from micro, small and medium enterprises, village and cottage industries, artisans and craftsmen.

The government had allowed 100% foreign direct investment in single brand retail in January 2012.