Home / Knowledge / News / Textiles / Indian govt may not relax sourcing norms for IKEA
Indian govt may not relax sourcing norms for IKEA
02
May '13
The Indian Government is likely to stick to its 30 percent local sourcing clause set for global single-brand retailers seeking to set shops in India through the foreign direct investment (FDI) route, according to an Economic Times report.
 
Since the Indian Government allowed 100 percent FDI in single-brand retail last year, several international retailers have been pushing the Government of India to consider their exports outside India for satisfying the 30 percent domestic sourcing requirement for their single-brand retailing ventures in India.
 
However, the Department of Industrial Policy and Promotion (DIPP), in its note to the Cabinet Committee of Economic Affairs (CCEA), has turned down Swedish home furnishings retailer IKEA’s proposal of considering sourcing by its entities for exports under the 30 percent clause, the Economic Times report says.
 
The CCEA is soon likely to decide on IKEA’s Rs. 105 billion investment proposal, which has already been cleared by the Foreign Investment Promotion Board (FIPB).
 
The DIPP, which is the first agency to approach for single brand retailers seeking to invest in India, also mentioned in its note to the CCEA that IKEA has accepted to satisfy the condition of sourcing 30 percent of its Indian stores requirement from domestic market within five years from the date it introduces its first set of investment in the country.
 
DIPP said that for its India plans, IKEA would have to operate two separate firms – one exclusively for retailing, and the other for sourcing goods to be sold only in India.
 

Fibre2fashion News Desk - India


Must ReadView All

Indian govt approves special package for leather, footwear

Textiles | On 16th Dec 2017

Indian govt approves special package for leather, footwear

The Union Cabinet chaired by PM Narendra Modi has approved a special...

EU parliament resolution calls for Cambodia sanctions

Apparel/Garments | On 16th Dec 2017

EU parliament resolution calls for Cambodia sanctions

Following the ongoing crackdown in Cambodia on the opposition and...

Affordable prices to be hit if US pulls out of NAFTA: NRF

Apparel/Garments | On 16th Dec 2017

Affordable prices to be hit if US pulls out of NAFTA: NRF

US retailers’ ability to offer consumers quality products at...

Interviews View All

Siddharth Biyani
Mangalam Industries Pvt Ltd

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

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Victor Chao
Esmetex

‘In future, clothing boundary lines will become increasingly blurred.’

Harsh Shah

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

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

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

December 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
68.1%
No
13.8%
Skip
18.1%

Total Votes: 94

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
62.8%
No
29.8%
Skip
7.4%

Total Votes: 94

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
87.2%
No
9.6%
Skip
3.2%

Total Votes: 94

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
81.9%
No
8.5%
Skip
9.6%

Total Votes: 94


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