The MSME Ministry on Thursday said the global multi-brand retailers must have to comply with the mandatory 30 per cent sourcing norm from small industries.
The MSME Ministry on Thursday said the global multi-brand retailers must have to comply with the mandatory 30 per cent sourcing norm from small industries.
"Not preferable, it is a must. We are proposing it should be a must," MSME Minister K H Muniyappa told reporters here on the sidelines of a Ficci-Google function.
He was replying to a question on the demand of global retailers. Retail giants like Walmart, Tesco and Carrefour have demanded from the government relaxation in the mandatory sourcing condition and make it to 'preferably' as in the case of single brand retail trading.
Also Wal-Mart has recently expressed its inability to the government on meeting the sourcing norm in the multi-brand segment that requires 30% procurement from small industries, stating it can procure only about 20%.
Meanwhile, Additional Secretary in the MSME Ministry Amarendra Sinha too said that the foreign retailers will have to source at least 30 per cent from SMEs.
Although the government has permitted 51 per cent FDI in multi-brand retail about ten months ago, no formal proposal has been received by the DIPP yet.
Muniyappa also a launched a project 'Badal', which is a cloud computing platform to enable MSMEs to improve their production processes, manufacturing capabilities, quality and competitiveness.
Muniyappa said technology was moving at a rapid pace and India needed to keep pace being able to compete in the world market.
There are numerous countries which are far ahead of India in this regard but the country's direct competition is with China in terms of production and quality, he said.
Additional Secretary & Development Commissioner in MSME Ministry Amarendra Sinha said in his Ministry 60 per cent of the schemes were online and by year-end all schemes will be available.
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