Single brand retail:Panel to decide on state-of-art products

The government has set up a committee to decide whether a product is state-of-the-art and can be eligible for exemption from the mandatory local sourcing applicable for FDI single brand retail trading.
The committee will be headed by Secretary in the Department of Industrial Policy and Promotion (DIPP) Ramesh Abhishek, an official said.
It will have a representative from NITI Aayog and an official from the concerned ministry.
This committee operationalise a provision of the policy of foreign direct investment (FDI) in single brand retail.
Last year, the government had relaxed the foreign direct investment (FDI) policy for single-brand retailing.

The government has stated that it may also relax the sourcing norms for entities undertaking single-brand retailing of products having state-of-the-art and cutting edge technology and where local sourcing is not possible.

In respect of proposals involving FDI beyond 51 per cent, sourcing of 30 per cent of the value of goods purchased, is mandatory from India especially from MSMEs, village an cottage industries, artisans, craftsman, in all sectors.
"The committee will scrutinise the applications of companies which would seek exemption from the sourcing norm on the ground that their product is 'state-of-art' and is using 'cutting-edge' technology for its manufacturing," an official said.

Another source said that some foreign companies in the telecommunication sector has sought permission to set up single brand retail stores in India and they also wants exemption from the sourcing provision.
IPhone and iPad maker Apple and Chinese smartphone maker Xiaomi have submitted applications with the DIPP for opening single-brand retail stores in the country.
At present, 100 per cent FDI is permitted in the sector but the companies are required to take FIPB permission if the limit exceeds 49 per cent.