Xiaomi says it no longer needs exemption from 30% local sourcing in manufacturing. What is this exemption and why does Xiaomi no longer needs it? Let's find out!
Companies like mobile manufactures in this case of foreign countries (China in this case) who want to setup manufacturing units in India have to mandatory use 30% Indian components in their products. However, a company can be exempted from this clause if it provides cutting edge technology like the product is so good and superior that it cannot depend on Indian components and must import all material from foreign. [A recent announcement of such exemption has been made for the setup of Apple manufacturing unit in India.]
Xiaomi till now was asking for the exemption of use of 30% Indian components by claiming their product falls under cutting edge technology. but their request wasn't accepted. After repeated denials, Xiaomi now says that they do not need exemption as they will be using 30% of Indian made components in their products. The reason behind the push for Indian product usage comes from the ambitious 'Make in India' campaign of the present government.
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