31.1 C
Delhi
Thursday, October 21, 2021

Xiaomi seeks complete local sourcing exemption in India

Must read

Apple announces special event for 18th October, New MacBook Pro expected!

Globally renowned company Apple has recently announced a new upcoming event which has been scheduled for 18th October, which is within a few days....

China has a competitive edge against the US in the field of AI!

The 1st ever chief software officer of the Pentagon quit this month, and now the reason for his leaving is known. Nicolas Chaillan, former...

Gmail Suffers an Outage in India, Causing Trouble in Sending and Receiving mails!

Google's e-mail service, aka Gmail, caused trouble for people in India today as the platform was reportedly down in some parts of the country....

New research shows an environmentally friendly way to extract rare earth elements!

Researchers at the Lawrence Livermore National Laboratory and Penn State have developed new research that shows how a protein isolated from bacteria and can...
- Advertisement -

Looking towards establishing retail stores chain, the Chinese smartphone giant Xiaomi has sought complete exemption from the local sourcing norms. Currently, the mandatory local sourcing norms to open single brand retails stores in India is 30 percent.

“The company has sought permission from the Department of Industrial Policy and Promotion (DIPP)for opening single-brand retail trading (SBRT) in India. They also want exemption from the mandatory local sourcing norms,” sources said.

- Advertisement -

Xiaomi when contacted about the matter, said: “We have filed an application for SBRT but would be unable to share more details as it is still at a nascent stage.”

Only last year, the government has provided relaxation in the foreign direct investment (FDI) policy for single-brand retailing. The policy states that the government has the right to relax the sourcing norms for establishment

As per the policy, the government may relax the sourcing norms for entities having ‘state-of-the-art’ and ‘cutting edge’ technology venturing towards single-brand retailing of products and where local sourcing is not possible.

Presently, companies are permitted to have 100 percent FDI in the sector but it is necessary for the companies whose limit are exceeding 49 percent to take FIPB permission.

Also, when the proposals involving FDI is beyond 51 percent, then it is mandatory to source and purchased 30 percent of the value of goods from India, preferably from artisans and craftsmen, village and cottage industries, MSMEs, in all sectors.

Xiaomi’s devices are sold through retail stores and select e-commerce platforms globally of which India is one of the biggest markets. According to IDC research firm, the shipment grew 28.8 percent in India to 103.6 million units in 2015 as compared to 10.1 percent growth in the global market.

- Advertisement -
- Advertisement -

More articles

- Advertisement -

Latest article

Apple announces special event for 18th October, New MacBook Pro expected!

Globally renowned company Apple has recently announced a new upcoming event which has been scheduled for 18th October, which is within a few days....

China has a competitive edge against the US in the field of AI!

The 1st ever chief software officer of the Pentagon quit this month, and now the reason for his leaving is known. Nicolas Chaillan, former...

Gmail Suffers an Outage in India, Causing Trouble in Sending and Receiving mails!

Google's e-mail service, aka Gmail, caused trouble for people in India today as the platform was reportedly down in some parts of the country....

New research shows an environmentally friendly way to extract rare earth elements!

Researchers at the Lawrence Livermore National Laboratory and Penn State have developed new research that shows how a protein isolated from bacteria and can...

Alendronate, the medicine for osteoporosis, reduces the risk of type 2 diabetics!

Diabetes is a chronic disease involving the body's production and response to insulin, which regulates blood sugar. Unmanaged blood sugar damages blood vessels and...