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.
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.
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.
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.