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Raise domestic sourcing in FDI multi-brand retail - AEPC
Sep '12
In a letter written to Shri Anand Sharma, the Union Commerce, Industry and Textiles Minister, Dr. A Sakthivel Chairman Apparel Export Promotion Council (AEPC), has requested Government to increase the share of domestic sourcing in FDI multi-brand retail by another 20 per cent. Dr. Sakthivel wrote, “In order to provide benefit of multi-brand retailing in India, the Government has prescribed 30% sourcing from the domestic market.

The SME sector would definitely take advantage of this.  In order to immediately take advantage of domestic sourcing, it is proposed that additional 20% sourcing can be mandated by the Government, which can be procured from the existing garment exporting firms, who are willing to take FDI route as per Circular No 1 of 2012 dated 10.04.2012. 

The proposed move would also enable the garment export factories to divert their available capacities and also continue to give employment to large number of workers, who are not able to continue due to crisis in Euro Zone.   This is also in line with Foreign Trade Policy, where activities in domestic markets have been incentivized.” The garment manufacturing exporting units are already equipped to handle this opportunity. 

The garment exporting units have experience in dealing-with overseas buyers, have compliant factories, which have highest standards of working and more and more garment exporting units have attained Council’s Common Code of Conduct programme DISHA, he added.

Dr. Sakthivel complimented Shri Anand Sharma on behalf of the entire Textiles Industry. He remarked, “The industry, once again, takes this opportunity to thank you for your vision, direction in restoring the confidence of investors in our great country. The industry is confident that with the introduction of this reform, there would be gains to our farmers, manufacturers, traders across the value-chain.”

Apparel Export Promotion Council (AEPC)

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