We have just given a relaxation that in the first three years if local sourcing for their retail outlet is becoming difficult, the first three years will be exempted. But the average that we calculate for the local sourcing requirement will be applicable after that for five years. So, it is not that as if we have completely dispensed with that clause. We have only said that give a breather for the first three years. We may do it afterwards.
Replying to a member's question, she said,
Let me put it on record here that I have approached Apple to explain what we have done as a policy change or tweaking. We have not yet had any response from the Apple. So, there is nothing that we have approved.
Providing details, she said the average that we calculate for the local sourcing requirement will be applicable after that for five years.
As regards the local sourcing requirement, Apple has not come back to us for approval. What we have just said is, we just provided a relaxation, she said.
Government recently issued new norms allowing single-brand retail trading and exemption from local sourcing for 'state-of-the-art and cutting edge technology' with a waiver for three years, and the option to extend it for five years. Apple may have to submit a fresh application for the same.
Apple CEO Tim Cook had visited India and met Prime Minister Narendra Modi and expressed the company's desire to set up a plant here.
He recently said that he is "looking forward" to setting up retail stores in India to tap into the booming smartphone market here.
India is now one of our fastest growing markets. In the first three quarters of this fiscal year, our iPhone sales in India were up 51 percent year-on-year, he said on an investor call.
He added the company has announced setting up of a design and development accelerator to support Indian developers creating innovative applications for iOS and opened a new office in Hyderabad to accelerate maps development. Cook, who visited India in May, had discussed issues including manufacturing and setting up retail stores in the country with Prime Minister Narendra Modi.
On a personal note, during the past quarter I visited China and India, and I am very encouraged about our growth prospects in those countries, he said.
The Cupertino-based tech giant had yesterday reported its revenues rising to $42.4 billion in the third quarter, driven by markets including India, Russia, Brazil, Turkey and Canada.