AAPL Apple Inc

   By Rajesh Roy 
 

NEW DELHI--India's Trade Ministry will approach the Finance Ministry to review its decision rejecting Apple Inc.'s application seeking exemption from rules on local sourcing of inputs, Trade Minister Nirmala Sitharaman said Monday.

"We took a line that we wouldn't mind waiving off the local sourcing norm for Apple's high end products," Ms. Sitharaman told reporters at a news conference. The "finance ministry has taken a different line. We will talk to them," she added.

India requires single-brand retailers that are more than 51% foreign-owned to buy at least 30% of their manufacturing materials from Indian vendors, but there aren't many high-end phone-part makers in India to buy from to meet the requirement.

The finance ministry recently rejected a government-panel recommendation to waive local sourcing requirements for Apple, in a decision that could effectively block the technology company's plan to open its own retail stores in the country.

On a separate application by the company seeking permission to sell refurbished phones in India, Ms. Sitharaman said that her ministry isn't in favor of allowing Apple to sell refurbished phones in the country, whether imported or refurbished locally.

The proposal is currently being considered by the Environment Ministry in consultation with the Prime Minister's Office.

Write to Rajesh Roy at rajesh.roy@wsj.com

(END) Dow Jones Newswires

May 30, 2016 03:25 ET (07:25 GMT)

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