Third tweak in retail sourcing norms may open floodgates for FDI

As part of FDI retail policy compliance, international chains have been asking the govt for years to count their India sourcing for global operations

The government is considering a relaxation of the domestic sourcing norms in the retail sector, as media reports have suggested. This is not the first time that the Department of Industrial Policy & Promotion (DIPP) is easing the sourcing norms, which is seen as the biggest obstacle in the way of foreign investment in retail trade. But the latest plan—to count India procurement for global operations as part of local sourcing obligations—will come as a major relief for several multinationals and may just open the floodgates for foreign direct investment (FDI).        

As per the current policy,