New Delhi: The Narendra Modi government has met a key demand of single-brand retailers by relaxing a mandatory 30 per cent local sourcing condition.
The change was announced along with the decision to allow 100 per cent foreign direct investment under the automatic route for single-brand retail trading, which will help companies like Apple to set up branded stores across India.
Foreign retailers will now be permitted to set off their incremental sourcing of goods from India for their global operations during the initial five years against the mandatory sourcing requirement. This means the value of even goods sourced for the retailer’s foreign operations, not just for the Indian business, will be counted for the first five years.
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