According to some government officials, the government is supporting the local sourcing norm which is 30 percent but it is open to offer some time to comply with the domestic sourcing norms to such multi-national firms.Another report reveals that the DIPP (Department of Industrial Policy and Promotion) is thinking of relaxing the FDI policy on sourcing in particular.
The norm has become a major problem between the ministries of commerce and Industries and the Finance ministry. The ministry of commerce and industry has recommended to relax the local sourcing norms for Apple but the Finance Ministry is not ready to accept the proposal. At present, the companies should get permission from FIPB if FDI limit exceeds 49 percent.
Apple sells it's products through it's self-owned retail stores in many countries like Germany, France, China, the UK and the USA. In the same way, the company wants to expand it's own retail stores all over India but it is facing critical situation is terms of local sourcing problem. Last year, the government had relaxed few norms and also stated that it may relax some mandatory local sourcing norms,when domestic sourcing for single brand retailing of high end products is not possible.