India's Trade Ministry To Seek Local Sourcing Rule Waiver for Apple
May 30 2016 - 3:40AM
Dow Jones News
By Rajesh Roy
NEW DELHI--India's Trade Ministry will approach the Finance
Ministry to review its decision rejecting Apple Inc.'s application
seeking exemption from rules on local sourcing of inputs, Trade
Minister Nirmala Sitharaman said Monday.
"We took a line that we wouldn't mind waiving off the local
sourcing norm for Apple's high end products," Ms. Sitharaman told
reporters at a news conference. The "finance ministry has taken a
different line. We will talk to them," she added.
India requires single-brand retailers that are more than 51%
foreign-owned to buy at least 30% of their manufacturing materials
from Indian vendors, but there aren't many high-end phone-part
makers in India to buy from to meet the requirement.
The finance ministry recently rejected a government-panel
recommendation to waive local sourcing requirements for Apple, in a
decision that could effectively block the technology company's plan
to open its own retail stores in the country.
On a separate application by the company seeking permission to
sell refurbished phones in India, Ms. Sitharaman said that her
ministry isn't in favor of allowing Apple to sell refurbished
phones in the country, whether imported or refurbished locally.
The proposal is currently being considered by the Environment
Ministry in consultation with the Prime Minister's Office.
Write to Rajesh Roy at rajesh.roy@wsj.com
(END) Dow Jones Newswires
May 30, 2016 03:25 ET (07:25 GMT)
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