Indian Retail Update : ¤ As per the present policy on foreign direct investment (FDI) in retail, 30% of products purchased shall be sourced from Indian ‘small industries’ which have a total investment in plant andmachinery not exceeding $1 million. This valuation refers to the value at the time of installation, without providing for depreciation. Ifat any point in time, this valuation is exceeded, the industry shall not qualify as a ‘small industry’ for this purpose. However, once the SME’s investment exceeds this limit, the companies will need some time to move on next SME to procure its raw material. Retailers have, therefore, sought “buffer time” while switching from one SME to the other once the original SME outgrows its$1-million limit. If the government agrees, the DIPPwill have to modify the current FDI policy and seek Cabinet approval.
Posted on: Wed, 12 Jun 2013 13:48:26 +0000
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