'FDI norms not to hurt MSME sector'

After suggestions of the Ministry of Micro, Small and Medium Enterprises (MSME) were ignored while diluting sourcing norms for foreign direct investment (FDI) in single brand retail, new minister K H Muniyappa on Monday said the new norms would not hurt the medium and small sector.

Recently, 30 per cent sourcing from MSME sector was made ‘preferable’ from earlier ‘mandatory’ provision. Muniyappa said competition from FDI would urge small and medium industry to raise the quality of products to match global standards.

“We will look at creating incentives,” he said.