Govt has decided to relax local sourcing norms up to 3 years and a relaxed sourcing regime for another 5 years for entities undertaking Single Brand Retail Trading of products having ‘state-of-art’ and ‘cutting edge’ technology.
This paves way for Apple to start its retail operations in India, which was one of the key discussion topic during Tim Cook's visit to India.
Insights from Vivek Gupta, Partner @BMR advisors:
The government appears to have tightened the sourcing norms for single brand trading in products having “state of the art” and “cutting edge” technology. While the language is not too clear, it appears that the entities engaged in trading of such products would now need to comply with the sourcing norms over a period of 8 years (3 plus 5) as against an earlier norm where the government had the option to completely waiving the sourcing norms for such entities. If this is indeed the case, this move would adversely impact the fate of several companies especially in the technology space, that were hoping for a complete waiver on the grounds that the products proposed to be sold involved state of the art technology.”