Nirmala Sitharaman seeks Apple waiver

Commerce minister Nirmala Sitharaman speaks about the achievements of her ministry in the two years of NDA government at a press conference at the National Media Centre in New Delhi. (Photo: PTI)

The commerce ministry will discuss the issue of exempting Apple from local sourcing norms with the finance ministry, which has rejected the proposal, even as the former is against allowing the iPhone maker to sell refurbished handsets in the country.

The finance ministry is against relaxing the 30 per cent domestic sourcing norms, as sought by iPhone and iPad maker Apple as a pre-condition to setting up single-brand retail stores in the country.

Commerce and industry minister Nirmala Sitharaman on Monday said that her ministry had agreed to waive the 30 per cent local sourcing requirement for high-end technology products.

“Specifically for the high-end technology products, we took a line that we would not mind waiving the 30 per cent local sourcing requirement...Now the Finance Ministry has already taken a different position, we will certainly talk to them.

“I want more clarity on that... We will talk and make sure that sooner we will come out with some decision. If there is a concern, I want to address that,” she told reporters here.

Explaining her position on Apple’s proposal, Ms Sitharaman said, the ministry is not talking about changing the rule for manufacturing and “we are just saying let’s be clear on single-brand retailing”.

“Why do we want to have something which is not going to change in any way the parameter in the market and therefore we want to explain it out to the finance ministry.”

She added that this is the issue on which the ministry has a genuine concern and therefore, within the government, “I want a consensus to evolve.”

The US-based giant has sought exemption on the ground that it makes state-of-the-art and cutting-edge technology products for which local sourcing is not possible.

A DIPP secretary headed panel had favoured waiving the mandatory local sourcing requirement for the US-based firm.

On Apple’s proposal to import refurbished phones and sell in India, Ms Sitharaman said, “We would not be in favour of whatever you may call them — used but refashioned, remodeled, updated... used goods. We are not in favour of bringing them here.”

The minister said that the finance ministry should consider raising tax holiday for startups to seven years from the current three years to encourage budding entrepreneurs.

“We shall pursue it and there shall now be lots more interactions with them,” she said.