Earlier this week, Commerce Minister Piyush Goyal told corporate honchos in London that India would over the next few weeks relax sourcing norms to attract foreign direct investment (FDI) in the single-brand retail sector. As things stand, India allows 100% FDI in single-brand retail, but asks foreign-owned single-brand retailers to locally procure 30% of the value of goods sold here, preferably from small and medium enterprises. Easier sourcing norms promise to lure several marquee brands aiming to sell imported products in India. An excessive emphasis on domestically manufactured products being on shop shelves had meant that FDI in single-brand retail never really took off. The best way to get those inflows is to liberalize the rules and drop burdensome conditions.

Source: Mint July 17, 2019 12:56 UTC