A positive move

FDI policy should be supplemented with wider reforms

The Union Cabinet on Wednesday liberalised foreign direct investment (FDI) norms in areas such as single-brand retail, contract manufacturing, and the coal sector. Of course, the most-awaited change was in sourcing norms for single-brand retail companies. While the government has not removed the 30 per cent sourcing requirement, compliance has indeed been made easier. For instance, local sourcing can now be met as an average of the first five years. This will give retailers more flexibility in the initial years. Further, goods procured for exports by single-brand retailers will be factored ...