DPIIT clarification on FDI in single brand retail trading
February 25, 2020
The DPIIT has issued a clarification with respect to FDI in Single Brand Retail Trading (SBRT) that, for the purpose of 30% mandatory sourcing from India for proposals involving FDI beyond 51%, the sourcing of goods from units located in a Special Economic Zone (SEZ) will qualify as sourcing from India, subject to the SEZ Act, 2005 and other applicable laws/ rules/ regulations. Further, goods which are proposed to be sourced by an SBRT entity from such units must be manufactured in India. However, compliance with all the conditions enumerated in the FDI Policy (in para 184.108.40.206 of Press Note 4 (2019)) and as notified under FEMA will continue to be the responsibility of the manufacturing entity.
To refer to the clarification dated 25 February 2020, click here