The Department of Industrial Policy and Promotion has sought more information from the Chinese mobile device maker Xiaomi to process the application for opening wholly-owned single-brand retail stores in India.
“The DIPP wants some more information from the company as there are some gaps in their application. After getting their response, the department will move forward on that,” an official said.
The information is important as Xiaomi has sought complete exemption from the mandatory 30 percent local sourcing norms.
When contacted about the matter, the company said: “We have submitted our application and currently it is under process with the DIPP.
“We are in constant discussion with the department for small clarifications, and we have not met any major obstacles to date. We are unable to comment further on the specifics of the application as it is still being processed.”
After the the government relaxed the foreign direct investment (FDI) policy for single-brand retail trading, several global players are showing keenness to open stores in the country.
Besides Xiaomi, tech giant Apple and Chinese technology company LeEco too have sought the government’s nod to open stores.