The new FDI policy announced by the Narendra Modi government on Monday clears the way for Apple to open stores in the country. Apple is expected to be a beneficiary of a three-year relaxation India is introducing on local sourcing norms with an extension of up to five years possible if it can be proven that products are “state of the art”. Other single-brand retailers like furniture giant IKEA are also expected to benefit.
- RSS wing opposes govt’s move to ease FDI rules
- To bring in more FDI, rules eased in retail, airlines, real estate
- Apple holds talks with Indian government on opening stores
- Nine FDI doors flung open, aviation, defence, single-brand retail among key sectors
- Mandatory local sourcing: Finance and Commerce ministries not on same page over ‘cutting edge’
- IKEA needs to submit revised application for opening stores
This is what the government note on the policy says about single brand retail:
It has now been decided to relax local sourcing norms up to three years and a relaxed sourcing regime for another five years for entities undertaking Single Brand Retail Trading of products having ‘state-of-art’ and ‘cutting edge’ technology.
Today’s amendments to the FDI Policy are meant to liberalise and simplify the FDI policy so as to provide ease of doing business in the country leading to larger FDI inflows contributing to growth of investment, incomes and employment.