The Department for Promotion of Industry & Internal Trade (DPIIT) on 25 February 2020 issued a clarification about the FDI policy on Single Brand Retail Trading (SBRT). Department has received representations from various business entities regarding whether sourcing of goods from units located in Special Economic Zone (SEZ) would qualify as sourcing from India, and the clarification has answered in the affirmative.
As per the extant Foreign Direct Investment (FDI) policy, 100% FDI is permitted under the automatic route in SBRT entities. However, SRBT entities with more than 51% FDI shall comply with the local sourcing requirements prescribed by DPIIT, whereby such SBRT must ensure that 30% of the value of goods are procured from India.
Department for Promotion of Industry & Internal has received representations from various business entities regarding clarification on FDI Policy on Single Brand Retail Trading (SBRT) as to whether sourcing of goods from units located in Special Economic Zone (SEZ) would qualify as sourcing from India, as per the FDI Policy.
It is clarified that sourcing of goods from such units would qualify as sourcing from India for the purpose of 30% mandatory sourcing.
Click here to read the Notification.
