Home / Knowledge / News / Apparel/Garments / Indian govt issues clarification on 30% sourcing from SMEs
Indian govt issues clarification on 30% sourcing from SMEs
08
Jun '13
In response to queries by prospective investors on Indian Government’s foreign direct investment (FDI) in multi-brand retailing, the Ministry of Commerce has issued clarification on the 30 percent souring from small and medium enterprises (SMEs).
 
In a statement, the Ministry said a foreign investor who purchases 30 percent of its total procurement through goods processed or manufactured by the SMEs, cannot distribute those goods either through the retail operation and/ or cash & carry operations and/ or export for the foreign investor’s international retail & trading operations.
 
The statement said, “The 30 percent sourcing will be reckoned only with reference to the front end store. As such a multi-brand retailing entity cannot engage in any other form of distribution.”
 
Giving a clarification on the definition of ‘small industries’, as used in the FDI Policy, the statement said the term refers to industries with maximum investment of US$ 1 million in plant and machinery.
 
On questions regarding identification of ‘small industries’, the statement said, “Certificate issued by District Industries Centre would be adequate authentication to confirm status of supplier as small industry.”
 
It further states that procurement of fresh produce is not covered by the 30 percent sourcing condition.
 

Fibre2fashion News Desk - India

Must ReadView All

Courtesy: Li & Fung

Textiles | On 24th Mar 2017

Li & Fung forms new supply chain partnership with PVH Corp

Li & Fung Limited, the world's leader in consumer goods design,...

Courtesy: Alizilla

Apparel/Garments | On 24th Mar 2017

Alibaba's eWTP finds first overseas base in Malaysia

In a step towards using the internet to bring small businesses around ...

Textiles | On 24th Mar 2017

BJMC to produce cotton-jute blended denim fabrics

To meet demand from the market, Bangladesh Jute Mills Corporation...

Interviews View All

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Priyanka
Studio Priyanka Rajiv

‘To reinvent the age-old tradition of embroidery to suit demographics and...

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
March 2017

March 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search