Home / Knowledge / News / Apparel/Garments / India's MSME Minister says 30% sourcing clause a must
India's MSME Minister says 30% sourcing clause a must
26
Jul '13
Global multi-brand retailers wishing to enter the Indian market through foreign direct investment (FDI) route must comply with the mandatory 30 percent sourcing clause, Mr. KH Muniyappa, Minister of Micro, Small and Medium Enterprises (MSME), has said.
 
Replying to a question on the demand of global retail giants to relax the mandatory sourcing norm and make it ‘preferably’, the Minister said, “Not preferable, it is a must. We are proposing it should be a must.”
 
The Minister was speaking to mediamen on the sidelines of a Federation of Indian Chambers of Commerce and Industry (FICCI) event in New Delhi.
 
The Minister said a multi-brand retail chain must not be allowed to source from those small and medium enterprises (SMEs), three years after such units cross the investment limit of US$ 1 million.
 
The present FDI policy norms stipulate that multi-brand retailers must mandatorily buy 30 percent of their products from those SMEs, whose investment in plant and machinery is less than US$ 1 million.
 
Earlier this week, a Parliamentary Standing Committee on Industry suggested the Indian Government to set up a regulatory body to address the problems that might come up due to the entry of global multi-brand retailers in the Indian market.
 
The committee also took serious note of the implementation of sourcing norms, and suggested that the minimum 30 percent sourcing from local SMEs should be made applicable item-wise.
 
The report also suggested that the Ministry of MSME should undertake a survey to find out the gains and losses of previous FDI policies on the MSME sector and to ascertain whether they have resulted in creation of any back-end infrastructure, imparted skills to local workforce or upgraded managerial skills, as is being envisaged in the current FDI policy. 
 
The Indian Government allowed 51 percent FDI in the country’s multi-brand retail sector in September 2012, but the Department of Industrial Policy and Promotion (DIPP) has not received any formal proposal yet.
 

Fibre2fashion News Desk - India


Must ReadView All

Courtesy: American Silk Mills

Textiles | On 18th Oct 2017

Sutlej Textiles adds American Silk Mills to its portfolio

Sutlej Textiles and Industries Ltd (STIL) has announced the...

Arvind Limited executive directors Punit Lalbhai (left) and Kulin Lalbhai explaining the project to Gujarat chief minister Vijay Rupani. Courtesy: Arvind Ltd

Apparel/Garments | On 18th Oct 2017

Arvind to set up mega apparel facility in Gujarat

Arvind Limited, one of India’s largest textile to retail...

Cotton stocks accumulating everywhere outside of China

Textiles | On 18th Oct 2017

Cotton stocks accumulating everywhere outside of China

Global cotton stocks outside of China are expected to rise by nearly...

Interviews View All

Nitin Bhatia
Trend Arrest

Setting up a brand for online selling is easy, but running the brand is not

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

Productivity, creativity and innovation play a vital role in the growth of ...

Subhashini Srinivasan
The S Studio

Ethnicwear market will see an upward trend if uniqueness and quality are...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

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

October 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
77.3%
No
13.6%
Skip
9.1%

Total Votes: 66

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
60.6%
No
28.8%
Skip
10.6%

Total Votes: 66

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
84.8%
No
10.6%
Skip
4.5%

Total Votes: 66

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
74.2%
No
12.1%
Skip
13.6%

Total Votes: 66


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search