Govt to ease local sourcing norms for FDI in single brand retail

Commerce and Industry Minister Shri Piyush Goyal stated in the UK-India Joint Economic and Trade Committee (JETCO) meeting in London on Monday that the local sourcing norms for FDI in single brand retail will be eased. This has already been proposed in the Union budget’19. “Designed in the UK – Made in India”can be the new focus area for this partnership. Similarly, in the services sector, India can provide huge technical expertise to British companies,” the Minister said. The current norms allow 100% FDI in the sector with certain conditions, including 30% mandatory local sourcing preferably from MSMEs. 

He further opined that India being a cost-competitive destination could be integral for British companies to expand their presence in other parts of the world,and UK’s flair for research & innovation could complement India’s skilled pool of labour. This could go a long way in establishing the 2 nations as preferred source countries in the global supply chain.