Did Tim Cook's Trip Work? Government Discussing Waiving '30% Local' Rule

New Delhi: A week after Apple CEO Tim Cook visited India, the government is looking at whether to waive local sourcing rules which would allow the company a far smoother ride in opening its own retail outlets in the country.

"We took a line that we wouldn't mind waiving off the local sourcing norm for Apple's high-end products," said Commerce Minister Nirmala Sitharaman. "(The) finance ministry has taken a different line. We will talk to them."

Apple was recently informed that it cannot sell refurbished phones in India at lower price, a proposal that was raised by Mr Cook during his trip to India which included a meeting with Prime Minister Narendra Modi. Ms Sitharaman said, "We would not be in favour of whatever you may call them -- used but refashioned, remodelled, updated... used goods. We are not in favour of bringing them here."

The Finance Ministry's foreign investment promotion board (FIPB), which clears foreign direct investment applications, has asked the iPhone maker to source at least 30% of its components locally if it wishes to open its own shops in India.

Apple hopes to expand its retail presence in India, one of the world's fastest-growing smartphone markets, at a time when sales in the United States and China have slowed.

India last year exempted foreign retailers selling "state of the art" or "cutting edge technology" from the sourcing rule, which states that 30 percent of the value of goods sold in a shop should be made in India.

But a government official, with direct knowledge of the FIPB decision, said Apple's request was turned down as it failed to provide any material "on record" to back it.

Ms Sitharaman said she was not in favour of relaxing rules for Apple to sell refurbished second-hand phones in India.