Tag Archives: foreign equity participation

ILN Today Post

Single Brand Retail – Relaxation of Local Sourcing Condition

The Government of India (“GoI”) is actively considering relaxation of the 30% local sourcing requirement presently applicable to single brand retail trading ventures wherein foreign equity participation exceeds 51%.

The requirement of sourcing 30% of the value of products from small industries, village and cottage industries, artisans and craftsman was prescribed by the GoI in January this year while allowing foreign investment beyond 51% in single brand retail trading ventures in India. The condition has proved to be a major impediment for brand owners wishing to invest in India owing to concerns over availability and seriousness of small suppliers, quality control and protection of intellectual property rights.

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