New Delhi, Oct 10 (KNN) The government has made it clear that it would not dilute any further the provision of 30 per cent mandatory sourcing of goods from the small scale sector by the global retailers wanting to enter India. The government assertion came after Wal-Mart decided to part ways with Bharti Enterprises and shelved its plan to set up retail stores in the country.
Secretary in the department of industrial policy and promotion, Saurabh Chandra has told media that the government policy “cannot be company specific.”
He said that the government has already provided for an enabling policy for FDI in retail under which global giants can bring in 51 per cent equity in multi-brand retail, subject to the rules of the game.
Rules of the game provide for sourcing of 30 per cent of the requirements from small industries.
While the government has already tweaked in some changes, it made it clear that no more dilution to meet each company’s requirement is possible.
Earlier, Commerce and Industries Minister, Anand Sharma had also heard similar views stating that policies cannot be company specific.
Walmart Asia CEO, Scott Price had stated last week that the world’s largest retailer had formed a franchisee in retail with Bharti hoping the FDI policy will be freed-up.
The sourcing requirement was insisted in the backdrop of concerns that the entry of foreign retailers into India would adversely impact the employment among the small and micro units as also the neighbourhood kirana stores.