Halister News

(Bloomberg) -- India’s Foreign Investment Promotion Board has ruled Apple must comply with local sourcing rules to sell products in the country through its own retail stores, people w/ direct knowledge of matter say.

• FIPB has cleared Apple’s application to open retail stores on that basis, the people say, asking not to be identified as decision isn’t public
• FIPB can’t certify Apple as provider of cutting-edge technology because criteria for qualification aren’t defined, the people say
• NOTE: Foreign businesses that retail a single brand in India must procure 30% of a product’s inputs locally; qualification as provider of high technology would have exempted maker of iPhones and iPads from that rule
• FIPB decision needs to be ratified by Finance Minister Arun Jaitley, the people say
• Finance Ministry spokesman D.S. Malik couldn’t immediately be reached for comment
• Apple in India didn’t immediately respond to phone calls and an e-mail seeking comment
• NOTE: Foreign Investment Promotion Board is part of India’s Finance Ministry and processes foreign-direct investment applications