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In a major boost to electronic giants, SEZs clear local sourcing test

While 100 per cent foreign direct investment (FDI) is allowed in single-brand retail, if the foreign investment exceeds 51 per cent, the 30 per cent mandatory local sourcing norm kicks in

Govt plans to remove minimum alternate tax on SEZs, boost exports
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Subhayan ChakrabortyArnab Dutta New Delhi
In a major boost to consumer electronic giants like Apple and Xiaomi, the government has relaxed the local sourcing norms. Issuing a clarification, the Department for Promotion of Industry and Internal Trade (DPIIT) on Wednesday said, foreign retailers can now meet their local sourcing requirements by buying goods produced in units based in Special Economic Zones (SEZs).

While 100 per cent foreign direct investment (FDI) is allowed in single-brand retail, if the foreign investment exceeds 51 per cent, the 30 per cent mandatory local sourcing norm kicks in.

“As regards, sourcing of goods from units located in SEZs in India, it may

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First Published: Feb 27 2020 | 1:07 AM IST

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