Home / Knowledge / News / Retail / India's proposal to ease local sourcing norms hailed

India's proposal to ease local sourcing norms hailed

Jul '19
Pic: Shutter Stock
Pic: Shutter Stock
The Indian Government's budget proposal to ease local sourcing norms for foreign direct investment (FDI) in single-brand retail has been hailed by global retailers like H&M and IKEA. The proposal could help attract more foreign investors, experts believe. Finance minister Nirmala Sitharaman, however, did not spell out the changes to be made in the norms.

The FDI policy on single-brand retail trade (SBRT) at present allows a 30 per cent local sourcing, preferably from micro, small and medium enterprises (MSMEs), village and cottage industries, artisans and craftsmen where the FDI exceeds 51 per cent.

Swedish home furnishings major IKEA is committed to increasing local sourcing from India and believes any positive move will encourage FDI and grow the industry even more in the country, IKEA India chief executive officer Peter Betzel told a news agency.

H&M India country manager Janne Einola expressed happiness over the government’s intent to drive ease of doing business.

Deloitte partner Anil Talreja saw the announcement as clearly laying out the carpet once again for the global single brand retail companies in India. Many of these companies were sitting on the border in a dilemma over investment in the Indian market on account of difficulty in meeting these sourcing conditions, he said.

The government has also proposed to consider relaxation in FDI norms in sectors like aviation, media, animation, visual effects, gaming and comics (AVGC) and insurance. (DS)

Fibre2Fashion News Desk – India

Must ReadView All

Pic: Shutterstock

Apparel/Garments | On 20th Jul 2019

Serbia's Maille Pirotex to open apparel manufacturing unit

Serbian textile company Maille Pirotex is planning to open an apparel ...

Pic: Shutterstock

Textiles | On 20th Jul 2019

Australia, India finalise new veterinary health protocol

India and Australia recently finalised a new veterinary health...

Pic: Shutterstock

Apparel/Garments | On 20th Jul 2019

BGMEA joins Fashion Industry Charter for Climate Action

The Bangladesh Garment Manufacturers and Exporters Association...

Interviews View All

Top executives, Machinery Company

Top executives
Machinery Company

We will promote latest technologies at ITMA Barcelona

Asim Dalal, Indo Count Retail Ventures

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Top executives, Textile industry, India

Top executives
Textile industry, India

Such fairs are a must for industry to showcase new innovations

Verena Ruckh,

Verena Ruckh

Brückner Trockentechnik develops, manufactures and supplies textile...

Karan Behal,

Karan Behal

Karan Behal, founder and chief executive of top-selling brand...

Martina Giorgetti,

Martina Giorgetti

Italy-based Cibitex is a manufacturer of textile finishing machinery,...

Karl Zelik, Vanderbilt University

Karl Zelik
Vanderbilt University

A team of engineers at the Vanderbilt University has designed a smart...

Kerem Durdag, Biovation II LLC

Kerem Durdag
Biovation II LLC

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

Prof Seokheun (Sean) Choi, Binghamton University, State University of New York (SUNY)

Prof Seokheun (Sean) Choi
Binghamton University, State University of New York (SUNY)

A team of researchers from the State University of New York (SUNY),...

Judy Frater, Somaiya Kala Vidya

Judy Frater
Somaiya Kala Vidya

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

Igor Chapurin, Chapurin

Igor Chapurin

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

Jay Ramrakhiani, Occasions Elegance Wear

Jay Ramrakhiani
Occasions Elegance Wear

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

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

July 2019

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

news category

Related Categories:

Advanced Search