Xiaomi India lodges FDI application

1 min readUpdated Jun 4, 2025Mar 28, 20163:00 AM

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Xiaomi India, the Chinese smartphone maker’s local subsidiary, has lodged an application with the government to operate single-brand retail stores.

The move coincides with US tech giant Apple resubmitting a similar application as it attempts to gain formal Indian Government approval to operate its own Apple Stores in the heavily-regulated economy.

Xiaomi currently sells handsets online and through a network of offline distributors.

But to gain approval to open single-brand stores, companies must commit to sourcing at least 30 per cent of its stock or componentry locally. Apple is applying for a waiver of this clause on the grounds it makes “state-of-the-art” and”’cutting edge” technology products which cannot be sourced locally.

“Chinese smartphone maker Xiaomi has submitted an application to the Department of Industrial Policy and Promotion (DIPP),” an official confirmed to Indian news media this week.

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What this means

Xiaomi's pursuit of single-brand retail stores in India is a calculated escalation against Apple, which faces similar regulatory hurdles. While Xiaomi currently relies on distributors, a direct presence enables greater control over customer experience and inventory, similar to Apple's significant Chinese retail store in Suzhou. However, the 30 per cent local sourcing mandate poses a significant barrier. Unlike Panpuri's multi-store Asian expansion which focused on market entry, Xiaomi's challenge is regulatory compliance, not just market penetration. Success hinges on DIPP's interpretation of the 'state-of-the-art' waiver, or Xiaomi's ability to meet local sourcing demands. Watch for the Department of Industrial Policy and Promotion's official statement.

Wei Zhang · Retail News Asia newsroom

Questions & Answers

Why is Xiaomi India applying to operate single-brand retail stores now?

The application allows Xiaomi India to expand beyond online sales and its current distributor network. This move aligns with a broader trend of companies seeking direct retail presence in the heavily-regulated Indian market.

What is the main condition Xiaomi India must meet to open single-brand stores?

To gain approval, Xiaomi India must commit to sourcing a minimum of 30% of its stock or components locally within India. This is a standard requirement for foreign companies seeking to operate single-brand retail outlets.

How does Xiaomi's application differ from Apple's, which is also mentioned?

Xiaomi has lodged a direct application, while Apple has resubmitted a similar application. Apple is also specifically seeking a waiver from the 30% local sourcing clause due to the advanced nature of its products.

Who confirmed Xiaomi's application to the Indian news media?

An official confirmed Xiaomi's application to the Department of Industrial Policy and Promotion (DIPP) to the Indian news media this week. This indicates formal progress on their submission.

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