The Government has received representations seeking concessions including 30 per cent local sourcing of component, duty exemption on manufacturing and repair units, components, capital equipment and consumables for smart phone manufacturing, service and repair.
As regards local sourcing requirement, it has already been notified that in case of ‘state-of-art’ and ‘cutting-edge technology’ sourcing, norms can be relaxed subject to Government approval. However, with a view to promote domestic manufacturing capacities and value addition, it has further been provided that this relaxation will be valid for an initial period of three years from the opening of first store, and thereafter, such entities will be required to meet the domestic sourcing norms.
As per extant FDI policy, foreign investment up to 100 percent is permitted for a company engaged in the business of manufacturing mobile phones. Under the automatic route, investment in the country can be made without prior approval either of the Government or the Reserve Bank of India. Moreover, FDI is largely a matter of private business decisions, and therefore, no such details regarding efforts made by foreign companies to set up i-phone and other manufacturing units in India can be maintained.