Foreign single brand retailers can source from SEZs to satisfy FDI requirements
27 Feb 2020
On 27 February 2020, the Ministry of Commerce and Industry published a clarification that single brand retailers, owned by foreign companies, can fulfill their local sourcing requirements by procuring goods produced in units based in special economic zones (SEZs). For single brand retail – 100 percent foreign direct investment (FDI) is allowed. However, if the foreign investment exceeds 51 percent, then sourcing 30 percent of the value of goods procured is mandatory from India. The clarification states that sourcing of goods from units located in SEZs in India would qualify as sourcing from India for the purpose of 30 percent mandatory sourcing from India.
-
Type:
-
Treatment and operation (Operational conditions )
-
Industry:
-
Services (Wholesale and retail trade)
-
Sources:
