In a major reform, the Modi government’s decision to ease the foreign direct investment (FDI) norms is no less than a ray of hope for business houses across the globe.
After the announcement, Chinese internet company, LeEco, has shown interest in opening more than 10 stores in India and is gearing up for the same. The company has taken a firm to decision of business expansion in major cities in India once it gets approval under single brand retail (SBR) license. The internet giant will install company-owned stores across India for wider visibility.
The announcement came just after the government relaxed the local sourcing norms to three years. However, the local sourcing tie-up can be extended for up to five years for the companies undertaking single brand retail trading of products having state-of-the-art technology.
Speaking on the move, Atul Jain, COO of LeEco’s Indian smartphone business said that the company is positive on expanding its business in India, and the recent amendment in the FDI norm will act as a catalyst for its business.
Two months ago, LeEco had filed an application for single brand retail license stating that it works on the similar lines of Apple. In its application, the company had asked for exemption for local sourcing since it uses cutting edge technology.
The latest amendment in the FDI norm has certainly offered a platform to numerous businesses to explore more in the arena. It goes without saying that this move will certainly be an icing on the cake for LeEco.