The Indian government has eased the sourcing norms for foreign direct investment (FDI) in single brand retail, which is expected to help companies like Apple and Tesla open shop in the country.
As per the new FDI policy, the 30% local sourcing norms will not be applicable for up to three years from the opening of the first store for all those selling products with cutting-edge technology and where local sourcing is not possible, reports Economic Times.
Last year, Apple had applied for exempting the sourcing norms for its iPhones and iPads. And earlier this year, Tesla founder Elon Musk had personally tweeted it would not be possible to meet the sourcing pre-condition to set up shop in India.
As per the earlier law, Tesla would have to set up a factory and begin sourcing components locally even before selling its first car here.
However, this particular norm had its positive fallouts. It had forced many global luxury automakers such as Mercedes-Benz, Audi, BMW, JLR and Volvo to set up local manufacturing and assembly units in India to tap the local market.