Home / Knowledge / News / Textiles / Govt may tweak sourcing clause in single brand retail
Govt may tweak sourcing clause in single brand retail
11
Jun '16
High-tech companies like Apple Inc. may be given more time to comply with the government's domestic sourcing norms for opening single-brand retail stores in the country.

Last year the government had said that it may relax the mandatory local sourcing norms for entities undertaking single-brand retailing of products having state-of-the-art and cutting edge technology and where local sourcing is not possible.

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


Must ReadView All

'Sportswear is much more mainstream than earlier'

Fashion | On 20th Jul 2018

'Sportswear is much more mainstream than earlier'

The business of sportswear has evolved at a fast pace over the years. ...

Courtesy: YKK

Textiles | On 20th Jul 2018

Japanese firm YKK explores opening office in Uzbekistan

Japanese company YKK recently discussed with the Uztuqimachiliksanoat ...

HFPA alerts member firms on latest US tariff announcement

Textiles | On 20th Jul 2018

HFPA alerts member firms on latest US tariff announcement

The US Home Fashion Products Association (HFPA) has alerted its...

Interviews View All

Janak Dhamanwala & Sunil Dhamanwala
Jansun

Moving towards sustainability is also a social change

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

C Kamatchisundaram
Voltas

ITME is an occasion not only to receive new leads but also to work on...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Kamal Kulshreshth

Colorjet is among the fastest-growing wide format digital inkjet print...

Apurva Kothari

No Nasties was the first fashion brand in India to make 100 per cent...

Mark Paterson
Technical Absorbents Ltd

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

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Madhu Jain
Madhu Jain

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

Cigdem Akin
Cigdem Akin

She has carved a niche for herself as the national brand of Turkey. Her...

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

Leave your Comments


July 2018

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

news category


Related Categories:

Advanced Search