Retail FDI: 30% sourcing from MSME may be 'preferred'

Tweeking of the policy to be discussed in the Cabinet today

While 100% FDI in single-brand retail has already been allowed, the tweaking in the policy could be discussed by the Cabinet today. The 30% sourcing clause for FDI in single brand retail could be tweaked to 'preferred' sourcing rather than 'mandatory' sourcing from MSMEs by the foreign firms.

Swedish furniture giant IKEA had made its mammoth Rs 10,500-crore investment proposal contingent on some changes such as the 30% mandatory sourcing norm from the micro and small enterprises sector and the related rules in this regard.

Department of Industrial Policy and Promotion Dipp has been reliably reported as keen to meet the Swedish trans-national at least part-way;

MSME, as being firmer on the validity of the existing norms.

Vayalar Ravi, MSME minister had written a letter to Prime Minister Manmohan Singh that 30% mandatory sourcing norms should not be done away with.