wordpress blog stats
Connect with us

Hi, what are you looking for?

30% local sourcing FDI rule on single brand retailers relaxed, physical stores before online sales not necessary

Piyush Goyal, Prakash Javadekar
Source: @PiyushGoyal/Twitter

Single brand retailers in India are no longer restrained by the 30% local sourcing FDI norms. They can also sell their goods online up to 2 years before opening brick and mortar stores. In a major relief to single brand retailers, the Union cabinet, on August 28, decided to relax norms for FDI to revive economic growth. Finance Minister Nirmala Sitharaman had announced that FDI norms would be eased for the single brand retail sector in her budget speech on July 5. Here are the new FDI rules for single brand retail trading [SBRT]: “It has been decided that all procurements made from India by the SBRT entity for that single brand shall be counted towards local sourcing, irrespective of whether the goods procured are sold in India or exported. Further, the current cap of considering exports for 5 years only is proposed to be removed, to give an impetus to exports.” Old rule: “30% of value of goods has to be procured from India if SBRT entity has FDI more than 51%. … [The] local sourcing requirement … can be met as an average during the first 5 years, and thereafter annually towards its India operations.” “ ‘sourcing of goods from India for global operations' can be done directly by the entity undertaking SBRT or its group companies (resident or non-resident}, or indirectly by them through a third party under a legally tenable agreement.” Old rule: “Local sourcing requirement, incremental sourcing for global operations by the non-resident entities undertaking…

Please subscribe/login to read the full story.
Written By

Send me tips at aditi@medianama.com. Email for Signal/WhatsApp.

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

India's smartphone operating system BharOS has received much buzz in the media lately, but does it really merit this attention?

News

After using the Mapples app as his default navigation app for a week, Sarvesh draws a comparison between Google Maps and Mapples

News

In the case of the ‘deemed consent' provision in the draft data protection law, brevity comes at the cost of clarity and user protection

News

The regulatory ambivalence around an instrument so essential to facilitate data exchange – the CM framework – is disconcerting for several reasons.

News

The provisions around grievance redressal in the Data Protection Bill "stands to be dangerously sparse and nugatory on various counts."

You May Also Like

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ