“Further, if at any point in time, this valuation is exceeded, the industry shall not qualify as a 'small industry' for this purpose. This procurement requirement would have to be met, in the first instance, as an average of five years’ total value of the manufactured/ processed products purchased, beginning 1st April of the year during which the first tranche of FDI is received. Thereafter, it would have to be met on an annual basis”
The 30% mandatory sourcing condition for permitting 51% FDI in multi brand retail trading is expected to encourage local value addition and manufacturing and thereby benefit small scale industries.
Minister of State for Commerce & Industry, Dr. S. Jagathrakshakan, in written reply to a question in Lok Sabha, said vide #
Ministry of Commerce & Industry
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