At least 30 per cent of the value of procurement of manufactured/processed products shall be sourced from Indian small industries.

So for high margin product like iphone, they're going to base it on cost of good or (materials). There's probably some fudging room.

For each product? You can't sell any product unless 30% of it was made in India?

oh no definitely not. For company product aggregate.

http://www.franchisetimes.com/May-2015/How-Indias-investment...

'All multi-brand retail operations with FDI must be locally sourced with at least 30 percent of the value of manufactured/processed products from Indian “small industries,” which have a total investment in plant and machinery not exceeding U.S. $1 million. '

Quite a tall order still.

But then how can you know how much will sell ahead of time?

Suppose I have exactly two products, one fully sourced from India, one sourced elsewhere. The legality depends on whether the first sells more than a 7:3 ratio over the second, which can't be determined before actually selling.

You're right and I don't know the details. But I assume you'd have to provide plausible sales projection data to the authority, and then have periodic audits.

These FDI restrictions were placed for multi-brand retail stores like Walmart.

I guess Apple stores are considered multi-brand because they sell some products from other brands as well.

These restrictions are only for foreign companies. An Indian company can sell 100% imported products without any restrictions, but they are required to pay import duty.