Sourcing norms dispute continues
Published: Jul 20, 2012
India – Retail sourcing in India may soon see a more relaxed ruling, in an effort to retain foreign investment.
According to Reuters, the stringent key clauses of its retail policy may be eased, but the extent has not been finalised.
The existing ruling requires local suppliers not to invest more than $1 million in plant and machinery for single brand retailers, AFP reported, a rule which aims to help India's manufacturing sector benefit from foreign investment.
Ikea had postponed plans to make an entrance for a significant amount of time, before finally moving forward last month. Plans were however delayed after a dispute over local sourcing policies.
Ikea had asked for a period of 10 years to fully comply with the rules, but the government felt time time frame was excessive.
UK footwear retailer Pavers has also since raised concerns, urging the Indian government to relax its sourcing norms.
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