"We have initiated the process and submitted a few documents online. However, this is very preliminary and the process will only be completed over the next few weeks, after which we will be sharing more details," Xiaomi said in an e-mail response.
The move follows US technology major Apple's similar application in India. The company sells its devices through select e-commerce platforms and retail stores.
According to research firm IDC, shipments in India grew 28.8 percent YoY to 103.6 million units in 2015 compared with 10.1 percent growth for the global market.
Last year, the government had relaxed the foreign direct investment (FDI) policy for single-brand retail.
In January, Apple had filed a proposal seeking permission for single-brand retail and selling products online, but DIPP had sought more information from the technology major due to certain gaps in the application.
Apple has resubmitted its application.