India might soon have branded stores being set up by companies like Apple, LeEco and Xiaomi, which had earlier applied for exemption of local sourcing rules. The government has relaxed FDI rule of mandatory 30% local sourcing for opening single brand retail stores for up to three years, and additionally up to five years if the brand proved that its products are “state-of-art and cutting edge’ technology, according to a PIB release. It also approved 100% FDI by default for DTH, Cable TV, HITS operators. Apple’s seeks approval for opening single brand stores: During Apple CEO Tim Cook’s visit to India last month, he had announced that Apple is planning to set up three branded retail stores in India but wanted the government to drop the 30% local sourcing clause. The government didn't agree to Apple's request. In April – a month before Cook's visit — the company reportedly gave a detailed presentation to a committee headed by Department of Industrial Policy and Promotion (DIPP) secretary Ramesh Abhishek. But it could not provide enough proof to justify relaxing of local sourcing norms, an Indian Express report said. “Apple had to provide enough material on record to justify the relaxation, which they couldn’t,” an official told the publication. Xiaomi’s withdraws request for relaxing local sourcing: In this month, Chinese smartphone maker Xiaomi, which had earlier applied for exemption of local sourcing rules withdrew its request. A company spokesperson told us that it is in "constant discussion with the department for small clarifications, and have not met any major…
