New Delhi: The Finance Ministry is against relaxing 30 per cent domestic sourcing norms being sought by iPhone and iPad maker Apple as a pre-condition for setting up single-brand retail stores in the country.
"The 30 per cent sourcing norms would apply to Apple's proposal," said a top Finance Ministry official, adding that it will defeat the purpose of Make in India and job creation.
The company has sought exemption from the local sourcing norms as the US-based giant makes state-of-the-art and cutting-edge technology products for which local sourcing is not possible.
Single-brand retailers are also allowed to take e-commerce route for such trading. At present, 100 per cent FDI is permitted in the sector.
But beyond 49 per cent, permission from the Foreign Investment Promotion Board (FIPB) is a must.
The company sells its products through Apple-owned retail stores in countries like China, Germany, the US, the UK and France, among others.
It has no wholly-owned store in India and sells its products through distributors such as Redington and Ingram Micro.
In January, Apple had filed proposal seeking permission for single-brand retailing and to sell products online but due to certain gaps in the application, the Department of Industrial Policy and Promotion (DIPP) had sought more information from the US-based technology giant. As a result, the company resubmitted its application in March.
