The small and medium enterprises (SME) sector is worried if Centre's decision to permit 100% FDI in single brand retail sector will help the sector or not.
The Indian government has permitted 100% foreign direct investment (FDI) in single brand retail. It has notified the regulations and stated that all wholly owned global brands will be needing to source minimum 30% of their need from the domestic small and cottage industries, which have a maximum investment in plant and machinery of $1 million (almost Rs 5 crore).
The Federation of Indian Micro, Small and Medium Enterprises (FISME), which is an apex body for the sector, has stated that the mandatory sourcing rider won't be making much of difference.
The Indian government has permitted 100% foreign direct investment (FDI) in single brand retail. It has notified the regulations and stated that all wholly owned global brands will be needing to source minimum 30% of their need from the domestic small and cottage industries, which have a maximum investment in plant and machinery of $1 million (almost Rs 5 crore).
The Federation of Indian Micro, Small and Medium Enterprises (FISME), which is an apex body for the sector, has stated that the mandatory sourcing rider won't be making much of difference.
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