Officials say the government does not want to dilute the mandatory 30 per cent local sourcing norm but is open to the possibility of giving more time to such firms.
"The Department of Industrial Policy and Promotion (DIPP) is looking to tweak the FDI policy on sourcing. Thirty per cent local sourcing norm may not be changed, but the time given to comply might be relaxed," a finance ministry official said.
The local sourcing norm has become a bone of contention between the Commerce and Industry Ministry and the Finance Ministry. While the Commerce Ministry has recommended that Apple Inc be exempted from this rule, the Finance Ministry has rejected it.
Currently, 100 per cent FDI is permitted in single-brand retail sector but companies are required to take FIPB permission if the limit exceeds 49 per cent.
In respect of proposals involving foreign investment beyond 51 per cent, sourcing of 30 per cent of the value of goods purchased, will be done from India, preferably from MSMEs, village and cottage industries, artisans and craftsmen, in all sectors.
According to the FDI policy, the sourcing requirement would have to be met, in the first instance, as an average of five years' total value of the goods purchased, beginning April 1 of the year of the commencement of the business i.e. opening of the first store. Thereafter, it would have to be met on an annual basis. (SH)
Fibre2Fashion News Desk – India
Fashion | On 25th Apr 2017
LVMH and Christian Dior, which holds directly and indirectly 41 per...
Information Technology | On 25th Apr 2017
It is the era of smart. Intelligent materials like self-repairing...
Indo Count Retail Ventures
Today, there is no other emerging market as India, "we make in India and...
Shiladitya K Joshi
Truetzschler India Private Limited
India ITME provides a platform to interact with our stakeholders
‘One of the recent trends in hand block printing is the indigo process,...
Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...
Steve Cole of Xerium Technologies discusses the industry. Xerium is the...
InvestKonsult Sweden AB
Investkonsult Sweden AB has been buying and selling second-hand textile...
Somaiya Kala Vidya
Among the many honours showered on Frater, including Fulbright and Ford...
Label Ritu Kumar
‘Classics will return’ "There are a lot of people wearing western clothes ...
<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...