The Indian Government has relaxed its FDI norms, allowing foreign companies in select sectors to establish operations in the country, including single-brand retail, reportedly by approving a three-year exemption from the 30% annual local sourcing norms required for foreign single-brand retail companies.
According to sources, Apple and other foreign companies will be given the flexibility to source the 30% over a period of eight years,three years as per the new norms of FDI and an additional five years will be given if it will be able to prove that it deals in ‘cutting-edge’ technology that’s unavailable in the country. But, by the end of the fifth year, Apple and other foreign companies need to have sourced an average of 30% locally over that per
These changes have been done hoping that this might ensure that the companies will be able to enhance their manufacturing base in that time in the country. And also to encourage the Foreign Investment in the country,this is also a step towards Digital India.