Xiaomi has filed an application with the DIPP seeking permission to set up its stores in India.
Yesterday reports claimed that iPhone and iPad maker Apple had resubmitted its application for opening single-brand retail stores in the country as there were certain gaps in its earlier proposal. The application is being processed by the Department of Industrial Policy and Promotion (DIPP), and now an official has said that Chinese smartphone maker Xiaomi too has submitted a similar application.
In January, Apple had filed proposal seeking permission for single-brand retailing and sell products online but due to certain gaps in the application, DIPP had sought more information from the US-based technology giant. According to sources, government could exempt the Cupertino-based company from the mandatory local sourcing norm of 30 percent as it makes ‘state-of-the-art’ and ‘cutting edge’ technology products. The company sells its products through Apple-owned retail stores in countries including China, Germany, the US, the UK and France. Apple has no wholly-owned store in India and sells products through distributors such as Redington and Ingram Micro.
Further, sources said Xiaomi too has submitted an application with the DIPP to open single-brand retail stores in the country. Currently, the Chinese company sells its products through e-commerce and offline platforms.
Last year, the government had relaxed the foreign direct investment (FDI) policy for single-brand retailing. The government had said it may also relax the sourcing norms for entities undertaking single-brand retailing of products having ‘state-of-the-art’ and ‘cutting edge’ technology and where local sourcing is not possible.
Single-brand retailers are also allowed to take ecommerce route for such trading. At present, 100 percent FDI is permitted in the sector but the companies are required to take FIPB permission if the limit exceeds 49 percent.
Source: bgr.in
Top Brands
