The government plans to dilute local sourcing norms and investment guidelines for foreign retailers as well as give states the freedom to relax the minimum 10 lakh population threshold,as it makes yet another attempt to woo global retail chains.The UPA government had last year staked its survival over the issue of allowing foreign supermarkets to invest in India,but has so far not been able to attract a single dollar from the likes of Walmart,Tesco and Carrefour,which have been unhappy with the stringent entry norms imposed on them.The governments attempt to relax these norms,in the form of clarifications issued a couple of months ago,had failed to assure foreign investors,and this is the second time it is trying to address their concerns.According to a cabinet note prepared by the Department of Industrial Policy and Promotion (DIPP),the stipulation that foreign multi-brand retailers must purchase 30% of what they sell in India from small vendors will remain.
Current policy:30% sourcing from local. sourcing from small industry.
proposed policy: sourcing will be done from micro, small and medium industries. it will also include sourcing from Agri and farmer cooperatives.
current policy: units with maximum $ 1 million investment in plant and machinery.
Current policy:30% sourcing from local. sourcing from small industry.
proposed policy: sourcing will be done from micro, small and medium industries. it will also include sourcing from Agri and farmer cooperatives.
current policy: units with maximum $ 1 million investment in plant and machinery.
proposed policy: limit is raised to $ 2 million
current policy: unit not eligible if it outgrows $ 1 M limit
proposed policy: unit can grow beyond the limit along with the retailer
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