US firms show distaste on MSME sourcing for FDI in retail
Updated: Oct 15, 2013 06:21:02pm
New Delhi, Oct 15 (KNN) The US industry bigwigs have conveyed to the Indian Government, their opposition to the mandatory local sourcing norms from MSMEs which govern the FDI rules in multi-brand retail.
However, the US business houses have been sounded quite well that there is no going back on the 30 per cent local sourcing requirement for global retailers which want to open stores in India.
In a meeting with Finance Minister, P Chidambaram who is currently touring the US, a member of the US-India Business Council said, “…market based incentives rather than mandates should be the drivers that attract manufacturing…India (should) make clear that the private sector is excluded from any localisation requirement.”
Nevertheless, Chidambaram in an interview with the Economic Times said, “…the local content requirement is there. That is the policy of the government. Whether your model can be implemented consistent with that policy is a decision you have to make.”
World’s largest retailer, Walmart has also expressed displeasure over local sourcing requirement by the Indian government.
While 51 per cent FDI has been allowed in multi-brand retail, for the last two years, not a single global store has opened shop yet. (KNN/PC)
However, the US business houses have been sounded quite well that there is no going back on the 30 per cent local sourcing requirement for global retailers which want to open stores in India.
In a meeting with Finance Minister, P Chidambaram who is currently touring the US, a member of the US-India Business Council said, “…market based incentives rather than mandates should be the drivers that attract manufacturing…India (should) make clear that the private sector is excluded from any localisation requirement.”
Nevertheless, Chidambaram in an interview with the Economic Times said, “…the local content requirement is there. That is the policy of the government. Whether your model can be implemented consistent with that policy is a decision you have to make.”
World’s largest retailer, Walmart has also expressed displeasure over local sourcing requirement by the Indian government.
While 51 per cent FDI has been allowed in multi-brand retail, for the last two years, not a single global store has opened shop yet. (KNN/PC)
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