Page 4 of 7 sourcing norms stipulated for the single-brand retail sector that could have the maximum and most visible impact. The Cabinet has tweaked the existing rule that requires a company with more than 51 per cent FDI to source at least 30 per cent of its goods from the domestic market.
The government will soon consider a proposal of relaxing rules for complying with the mandatory 30 per cent local sourcing norms by foreign single brand retailers. As per the proposal, single-brand retail firms would also be permitted to open online stores before setting up brick-and-mortar shops. Currently, online sale by a single-brand retail player is allowed only after opening of physical outlet.