2012-09-10

Govt dilutes sourcing norms on FDI

In latest development on FDI in single brand retail, the government has reportedly diluted the norms for foreign investors pertaining to source their products from SMEs. According to government officials, the Commerce and Industry Ministry has liberalised

Govt dilutes sourcing norms on FDI

In latest development on FDI in single brand retail, the government has reportedly diluted the norms for foreign investors pertaining to source their products from SMEs. According to government officials, the Commerce and Industry Ministry has liberalised the rules to accommodate Swedish furniture giant IKEA’s demands.

According to officials, softening the sourcing norms suggests that preference should be given to SMEs by foreign companies in sourcing their demands. However, the current policy has made 30 per cent sourcing of their demands from SMEs mandatory.

The move is critical for foreign investment in India as the dilution would ease off the entry barriers for foreign retailers who want to tap the emerging retail market in India. However, last week, the government had ruled any dilution in sourcing norms.

“We are not talking of any dilution. We are talking of clarity... We are very clear that 30 per cent of the sourcing has to be from India primarily from micro, small and medium enterprises,” Anand Sharma, Commerce and Industry minister had told earlier this month to reporters.

The minister had said that major retailers in the single brand were already sourcing from India. IKEA source products worth 1 billion euros from India and mainly from handloom and carpet clusters.

“Cabinet decision is taken and if there is any clarity required we will do that. If we feel that there is a need of clarity to ensure that their investments are facilitated, we will do that,” Sharma added earlier.

Related opportunities
  • Sports Equipment Stores
    Prosports is well known in India for associating with brands..
    Locations looking for expansion Karnataka
    Establishment year 2023
    Franchising Launch Date 2023
    Investment size Rs. 20lakh - 30lakh
    Space required 500
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Bangalore Karnataka
  • Readymade
    We are providing stylish trendy clothing line in premium quality..
    Locations looking for expansion Punjab
    Establishment year 1954
    Franchising Launch Date 2023
    Investment size Rs. 30lakh - 50lakh
    Space required 1000
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Ludhiana Punjab
  • YODA is a one-stop destination for all your diagnostic needs...
    Locations looking for expansion Andhra pradesh
    Establishment year 2021
    Franchising Launch Date 2023
    Investment size Rs. 50lakh - 1 Cr.
    Space required 250
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Hyderabad Andhra pradesh
  • Tea And Coffee Chain
    Dr.Bubbles is a tea based beverage with fruit flavour infusions,..
    Locations looking for expansion Tamil nadu
    Establishment year 2015
    Franchising Launch Date 2023
    Investment size Rs. 20lakh - 30lakh
    Space required 200
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Chennai Tamil nadu
Insta-Subscribe to
The Franchising World
Magazine
tfw-80x109
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
email
mobile
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities

Free Advice - Ask Our Experts

pincode
;
ads ads ads ads