ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2023
  • Adani Saga
  • Markets
    • Stocks
    • Global Markets
    • IPO
    • Companies
    • Currency
    • Commodities
  • My Money
  • Calculators
    • Income Tax Calculator
    • Home Loan/EMI Calculator
    • Mutual Fund Returns Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • SIP calculator
    • Lumpsum Calculator
    • SWP Calculator
  • Videos
    • M Se Market
    • Jeb Zindagi Zaroorat
    • Light Camera Stocks
    • Tech Takes
    • Big Bulls Ka Nishana
    • Paisa Wasool
    • Commodity Ke MrityunjayMantra
    • The Right Property Show
  • Economy & Infra
    • Policy & Initiatives
    • Agriculture
    • Telecom
    • Aviation
    • Railways
    • Retail
    • Roadways
    • World Economy
  • Exclusive
    • Wealth Guide
    • Interviews
  • Auto
    • Cars
    • Bikes
    • Electric Vehicle
    • Commercial Vehicles
  • Tech
    • Mobiles
    • Gadgets
    • Reviews
    • Tips and Tricks
    • Apps
  • Real Estate
    • Home Buyers
    • Builders
  • Axis MF
  • Trending
    • Entertainment
    • Politics
    • Lifestyle
    • Travel
    • Sports
    • Viral
    • Education
    • Jobs
Read in App
Business News » India News

Cabinet to soon consider relaxing local sourcing norms for single brand retailers

But such firms would have to set up brick-and-mortar shops within two years of starting online sales.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Cabinet to soon consider relaxing local sourcing norms for single brand retailers
Currently, online sale by a single-brand retail player is allowed only after opening of physical outlet. Reuters

 The cabinet is expected to soon consider a proposal of FDI-linked relaxation for mandatory 30 per cent local sourcing norms for foreign single brand retailers by allowing them more time to comply with regulations, sources said.The commerce and industry ministry has already circulated a draft cabinet note seeking views of different ministries including the department of economic affairs on the proposal, one of the sources said, adding that "after receiving the comments, the ministry would soon approach the cabinet for its consideration".

With a view to attract big players such as iPhone maker Apple, as per the proposal, single-brand retail firms may be permitted to open online stores before setting up brick-and-mortar shops if they bring in over USD 200 million foreign direct investment (FDI).

But such firms would have to set up brick-and-mortar shops within two years of starting online sales.

Currently, online sale by a single-brand retail player is allowed only after opening of physical outlet.

Retail traders may also be allowed to adjust the incremental sourcing of goods from India for global operations during the initial 6-10 years, from the current five years (beginning April 1 of the year of the opening of first store), against the mandatory sourcing requirement of 30 per cent of purchases from India.

These relaxations too would be subject to quantum of FDI one brings in India.

While six years' time would be given to a retailer that invests USD 100 million in the sector, 8 years and 10 years time would be given to those who bring in USD 200 million and USD 300 million foreign inflows in the sector, respectively.

In January 2018, the government allowed 100 per cent FDI in the sector, permitting foreign players in single-brand retail trade to set up own shops in India without government approval.

That time, the government also relaxed mandatory local sourcing requirement of 30 per cent by stating that a foreign retailer would be able to get credit from incremental rise in sourcing for its global operations

from India towards the mandatory 30 per cent local sourcing requirement for its business in the country.

Watch This Zee Business Video

In 2016, Apple India had sought relaxation in the local sourcing norms to set up single brand retail stores in India.

During April-September 2018-19, FDI in India declined by 11 per cent to USD 22.66 billion.

 

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Foreign Direct Investment
Written By: PTI
Updated: Wed, Feb 13, 2019
02:00 pm
New Delhi, PTI
RELATED NEWS
India Inc's foreign investment declines over 50 pc to USD 1.11 bn in July India Inc's foreign investment declines over 50 pc to USD 1.11 bn in July
Can adverse developments in Taiwan following Nancy Pelosi's visit impact India? RBI Governor Shaktikanta Das responds Can adverse developments in Taiwan following Nancy Pelosi's visit impact India? RBI Governor Shaktikanta Das responds
76% jump in manufacturing sector FDI in FY22: Commerce Ministry 76% jump in manufacturing sector FDI in FY22: Commerce Ministry
Govt issues notification on 100 per cent FDI in telecom sector Govt issues notification on 100 per cent FDI in telecom sector
India receives $64 bln FDI in 2020, fifth largest recipient of inflows in world: UN India receives $64 bln FDI in 2020, fifth largest recipient of inflows in world: UN

LATEST NEWS

Global bond indices not exclusive club or gymkhana; India will get into it on own terms: Top Govt Official

World Cancer Day 2023: Why it is celebrated on February 4? Check history, misconception, theme and more

Vani Jayaram songs list in Telugu, Malayalam and Kannada: Remembering veteran playback singer who sung over 10,000 songs

Stock Split: This small-cap company splits shares in 5:1 ratio after delivering 817% return in 5 years

Hindenburg Effect: Axis Bank says exposure to Adani Group is nearly 1% of total loans

Explained: What is Chinese spy balloon that was shot down by US Air Force - Check Video

Market Next Week: Tata Steel, Hero Moto, M&M results, RBI policy meeting, macro data, global cues among top cues for D-Street

ITC Dividend 2023: Check record date, ex-date and payment date | ITC Share Price NSE Target

Apple CEO Tim Cook says India is ‘hugely exciting market’; confirms about opening retail store in the country

Vani Jayaram, veteran playback singer, dies at 77

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2023. India Dot Com Private Limited. All Rights Reserved.
LIVE TV