{"id":32121,"date":"2018-10-29T12:43:49","date_gmt":"2018-10-29T07:13:49","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=32121"},"modified":"2018-10-29T12:43:49","modified_gmt":"2018-10-29T07:13:49","slug":"centre-opens-arms-to-single-brand-retail-fdi","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/centre-opens-arms-to-single-brand-retail-fdi\/","title":{"rendered":"Centre opens arms to single brand retail FDI"},"content":{"rendered":"<p><a href=\"https:\/\/www.pressreader.com\/india\/the-hindu\/20180111\/282256665893340http:\/www.thehindu.com\/news\/national\/pm-wants-all-ministries-to-work-on-backward-districts\/article22413281.ece\"><strong>Centre opens arms to single brand retail FDI<\/strong><\/a><\/p>\n<p><strong>Context<\/strong><\/p>\n<p>The Union government on Wednesday liberalised and simplified the\u00a0Foreign Direct Investment\u00a0(FDI) regime in a host of sectors, including\u00a0Single Brand Retail\u00a0Trading (SBRT)<\/p>\n<p><strong>What has happened?<\/strong><\/p>\n<p>The Union Cabinet, chaired by Prime Minister Narendra Modi, gave its approval to a proposal permitting <strong>100% FDI under the automatic route for SBRT<\/strong><\/p>\n<p><strong>Other steps<\/strong><\/p>\n<ul>\n<li><strong>Easing of sourcing norms<\/strong>: The Centre also eased \u2018sourcing norms\u2019 in SBRT by permitting companies to set off their incremental sourcing of goods from India for global operations in the initial five years \u2014 beginning April 1 of the year of the opening of the firm\u2019s first store \u2014 against the mandatory sourcing requirement of 30% of purchases from India<\/li>\n<li>After the completion of the five-year period, SBRT entities would be required to meet the 30% sourcing norms directly towards its India\u2019s operation, on an annual basis, the government said in an official statement<\/li>\n<\/ul>\n<p><strong>Benefits of the move<\/strong><\/p>\n<ul>\n<li><strong>Global companies<\/strong>: The relaxation in sourcing norms could help companies like Apple, which had been seeking exemption from the 30% local sourcing norm, according to PankajMohindroo, national president, Indian Cellular Association (ICA)<\/li>\n<li><strong>Make in India<\/strong>: The move will not only attract additional foreign capital into the country, but will also provide an impetus to the retail industry growth, at a time when organised retail is already seeing strong growth over the last 12 months<\/li>\n<li>Global brands across different categories, from apparel to electronics to accessories will be aided through this, providing further options to Indian consumers and improving India\u2019s ranking in ease of doing business<\/li>\n<li>The relaxation in local sourcing norms would allow the SBRT entity adequate time to set up their supply chain for local souring in India, Mr. Wahi said, adding that it would also provide an impetus to the government\u2019s \u201cMake In India\u201d initiative<\/li>\n<li>The move would open up the Indian retail markets, leading to greater number of brands entering the Indian retail space and thus increasing competition<\/li>\n<\/ul>\n<p><strong>Why Apple has sought the waiver?<\/strong><\/p>\n<p>Apple is learnt to have sought the waiver on the ground that it manufactures \u2018cutting-edge technology\u2019 products for which it is not possible to source as much from India due to the absence of or low capacity of the requisite supply-chain items<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Centre opens arms to single brand retail FDI Context The Union government on Wednesday liberalised and simplified the\u00a0Foreign Direct Investment\u00a0(FDI) regime in a host of sectors, including\u00a0Single Brand Retail\u00a0Trading (SBRT) What has happened? The Union Cabinet, chaired by Prime Minister Narendra Modi, gave its approval to a proposal permitting 100% FDI under the automatic route&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/centre-opens-arms-to-single-brand-retail-fdi\/\">Continue reading <span class=\"screen-reader-text\">Centre opens arms to single brand retail FDI<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-32121","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1703956280},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/32121","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=32121"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/32121\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=32121"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=32121"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=32121"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}