(by NT Balanarayan & Vikas SN) Apple Inc has asked the Indian government to relax the clause in FDI policy that requires companies to source at least 30% of the goods to be sold from local partners, reports Business Standard. It says Apple's senior management executives recently met officials in the Department of Industrial Policy and Promotion (DIPP) to find out if an exception could be made for the company as it wants to set up store here. A senior DIPP official told the publication, “They (Apple) have clearly told us that they cannot adhere to the sourcing norms as they hardly use any hardware for their products. We have also told them that while the government is keen on investments, it cannot make exceptions. However, we can analyse a company’s needs on a case by case basis.” Remember that while the Indian government allows 100% FDI in single brand retail, it comes with a rider which mandates retail ventures to source 30% its materials locally. This creates a roadblock for Apple which cannot adhere to this clause since it uses minimal hardware for its products. The company has apparently told DIPP that "its iPhones and iPads hardly have any hardware content, while its laptops are assembled products." Franchisee Store Model To address this, Apple was reportedly asking its exclusive franchisees to redesign all their stores to match Apple’s own retail stores in terms of layouts and fit-outs while reimbursing the entire cost to the franchisee. It was also looking to increase the number of exclusive franchisee stores in the…
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