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New Delhi, Feb 26 () Goods procured from units in special economic zones (SEZs) by single brand retailers, owned by foreign companies, would qualify for meeting the mandatory 30 per cent local sourcing conditions, according to a government clarification. According to the current foreign direct investment (FDI) policy on single brand retail trading, 100 per cent overseas investments are allowed in the sector. But sourcing of 30 per cent of the value of goods procured is mandatory from India for such companies having FDI beyond 51 per cent. The government has received representations from various business entities seeking clarification whether sourcing of goods from units located in SEZs would qualify as sourcing from India, as per FDI policy. "As regards, sourcing of goods from units located in SEZs in India, it may be clarified that sourcing of goods from such units would qualify as sourcing from India for the purpose of 30 per cent mandatory sourcing from India for proposals involving FDI beyond 51 per cent, subject to SEZ Act, 2005," according to the clarification. However, it said that goods which are proposed to be sourced by a single brand retailer from SEZ units will have to be manufactured in India. It added that compliance with all the conditions enumerated in the FDI policy and as notified under FEMA (Foreign Exchange Management Act) would continue to be the responsibility of manufacturing entity. SEZs, developed as export hubs, are treated as foreign territory in terms of customs laws. Procurement of goods and services from units in these zones are treated as imports. In February 2006, the government for the first time opened the sector for foreign players by allowing 51 per cent FDI. In January 2012, the cap was raised to 100 per cent -- up to 49 per cent through automatic route and beyond that with the government approval. In January 2018, the government allowed 100 per cent FDI in the sector, permitting foreign players in single brand retail trade to set up own shops in India without government approval. FDI into India grew by 15 per cent to USD 26 billion (about Rs 1,85,000 crore) during April-September 2019-20. RR RVK

Goods procured from SEZs by single brand retailers to qualify for meeting local sourcing norms

New Delhi, Mar 11 () A parliamentary panel on Wednesday expressed concerns over decline in foreign direct investment (FDI) in the manufacturing sector and recommended to address these issues to make India an attractive destination for investments. The Department-Related Parliamentary Standing Committee on Commerce said the FDI equity inflow in manufacturing is declining and the sector's share in the total FDI inflow in 2018-19 was around 23 per cent "which is very low". It said the "low inflow of FDI in the manufacturing sector defeats the very purpose of Make in India scheme". It recommended the commerce department to take concerted efforts to increase the share of manufacturing sector in FDI inflows. It said that in the past five-and-a-half years (April 2014-September 2019), India received FDI inflows worth USD 319 billion, which is 50 per cent of the total FDI inflow (USD 642 billion) in the past over 19 years since April 2000. It also asked for fast disposal of 51 pending cases of FDI proposals. "The committee, while appreciating the liberal and investment-friendly policies adopted by the government, recommends to take necessary precautions/ steps to ensure that the liberal policies are not exploited by some unscrupulous investors and institute a stringent mechanism to check the misuse of FDI for routing black money in the guise of FDI," it said. Besides, the report stated that a large chunk of FDI inflow is captured by a few states while majority of them witness a minimal inflow of FDI. It recommended the government to take necessary steps to increase the inflow of FDI into the lean states to ensure balanced growth so that there is no regional disparity in development. Further, it asked the department to be vigilant about the domestic sourcing norms and ensure that they are strictly adhered to by the multinational corporations so that the intended benefits are accrued to the target groups. "The committee recommends to address the concerns raised by the domestic retailers and indigenous traders in a structured manner through its retail trade policy which is supposedly under preparation," the report added. The report also said necessary steps need to be taken to ensure that the liberalisation of the coal sector provides the required impetus to the sector. It called for concerted efforts for revival of the industrial sector with focus on mining, manufacturing and electricity sectors given their importance in the economy and to address declining capacity utilisation of the manufacturing sector considering its impact on investment and job creation. On the proposed new industrial policy, it suggested for finalising the policy at the earliest in tune with changing global scenario. On intellectual property rights, the committee stressed the need to further reduce the time for examination and disposal of patents to match the international standard, create awareness among various stakeholders and fill the sanctioned posts of patent examiners and controllers at the earliest. Taking note of the World Bank's Doing Business Report, 2020, which ranks India at 63rd among 190 countries, it said sustained measures need to be taken for further improvement. Further, for start-ups, it suggested to increase registration of start-ups in Government e-Marketplace portal, facilitate establishment of start-ups in those states with dismal record, address the issue of insignificant drawing of funds from the Fund of Funds Scheme and operationalisation of Credit Guarantee Scheme to ease the availability of credit. "Expressing concern over the delay in payment by the PSUs (public sector undertakings) and the government departments to the start-ups, the committee recommended to increase procurement and payment of dues within a stipulated time period," it said. RR HRS

Par panel expresses concerns over dip in FDI in manufacturing sector

New Delhi, Nov 20 () Trade associations observed "National Protest Day" on Wednesday and held protest dharnas against "unethical trade practices" of leading e-commerce firms like Amazon and Flipkart in over 700 cities across the country, CAIT said.
 The traders' body, which has been alleging that these e-commerce firms were adopting unethical trade practices and are openly violating the government's FDI policy, claimed the protests were attended by lakhs of traders.
 "The demonstrating traders said India's e-commerce market has been made highly toxic by Amazon and Flipkart with their unethical trade practices and open violation of the government's FDI policy," the Confederation of All India Traders (CAIT) said.
 According to the traders' body, the protestors demanded that the government impose an immediate ban on e-commerce portals of both Amazon and Flipkart.
 B C Bhartia, National President of CAIT said traders have no objection to Amazon and Flipkart conducting business in India, but like merchants, these e-commerce firms should also follow every provision of foreign direct investment (FDI) policy of the government and other tax laws.
 The traders' body demanded that Amazon and Flipkart be asked to shut their portals till the time these firms make their portals fully compliant with FDI policy and other laws.
 It has also sought a probe into the business model, accounts and inflow of foreign investment and its disbursal by both the companies. RSN DRR

Traders' body holds nation-wide protests; demands ban on Amazon, Flipkart

New Delhi, In a significant development related to war between e-commerce giants and traders of India, the Union Government has directed the Enforcement Directorate and Reserve <keyword id="6355303" type="DOMAIN" weightage="20" keywordseo="bank-of-india">Bank of India</keyword> to take necessary action against <keyword id="18635" type="COMPANY" weightage="20" keywordseo="Amazon">Amazon</keyword> and Walmart-owned-Flipkart. The Centre has taken strong cognizance of various complaints made by the Confederation of All India Traders (CAIT) for <keyword id="2621917" type="PERSON" weightage="20" keywordseo="blatant-violation">blatant violation</keyword> of <keyword id="35066" type="ORGANIZATION" weightage="20" keywordseo="fdi-policy">FDI Policy</keyword> and Foreign Exchange Management Act, 1999 (FEMA) by these companies. CAIT National President B.C. Bhartia and Secretary General Praveen Khandelwal informed that on several complaints made by the CAIT to Union <keyword id="84" type="ORGANIZATION" weightage="20" keywordseo="Commerce">Commerce</keyword> Minister Piyush Goyal in the recent past against Amazon &amp; Walmart-owned-<keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword>, the Department of Promotion of Industries and Internal Trade (DPIIT) of the Ministry of Commerce in its letter issued on December has asked both Enforcement Directorate and Reserve Bank of India to take necessary action against Amazon and Flipkart. Bhartia and Khandelwal said that in its communication to ED and RBI, the DPIIT has forwarded four complaints of CAIT including violation of FDI policy in deal between Flipkart and Aditya Birla Group, violation of FDI policy related to FDI in manufacturing which is being used for Multi Brand Retailing by various e-commerce companies, violation of FEMA and its rules by Amazon and blatant violation of FEMA and FDI Policy by Amazon and Flipkart and exploitation of loopholes by them. CAIT said that traders across Country will observe Year 2021 as "Bhartiya Vyapaar Samman Varsh" under the aegis of CAIT and all efforts will be made to clean the e-commerce landscape of India and an era of manipulations, mal-practices and exploitation will come to end and the CAIT will promote and encourage traders across Country to adopt digital commerce and digital payments as new instruments to widen the net of business in India. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/top-stocks-to-watch-tata-steel-vedanta-adani-green-tata-motors-maruti-mm-dhfl-v-mart-indian-bank-and-others/articleshow/80038635.cms">Top stocks to watch — Tata Steel, Vedanta, Adani Green, Tata Motors, Maruti, M&amp;M, DHFL, V-Mart, Indian Bank, and others</a> <a href="https://www.businessinsider.in/tech/mobile/news/checkout-the-list-of-upcoming-new-mobiles-in-january-2021-with-expected-price/articleshow/80039794.cms">Upcoming smartphones in India in January 2021</a> <a href="https://www.businessinsider.in/international/news/ten-of-the-most-outrageous-predictions-for-2021-according-to-saxo-bank/slidelist/80040045.cms">From Amazon buying Cyprus to Germany bailing out France — here are ten of the most ‘outrageous’ predictions for 2021</a> <a href="https://www.businessinsider.in/business/startups/news/india-edtech-in-charts-how-the-shi[%E2%80%A6]es-of-byjus-unacademy-and-others/articleshow/80040270.cms">India’s edtech in charts – How the shift to online learning meant money, valuation and users for the likes of BYJU’S, Unacademy, and others</a>

Amazon and Flipkart accused of violating FDI policy — Indian government asks RBI and ED to take action

Ready to take full advantage of the current market situation, both eCommerce companies and brick-and-mortar retailers want to make maximum profit and debating over who can be tagged as a marketplace. Both share different views over Foreign Direct Investment (<keyword id="44528" type="ORGANIZATION" weightage="80" keywordseo="FDI">FDI</keyword>) in online stores. 
 eCommerce companies such as Amazon, Flipkart and <keyword id="541988" type="COMPANY" weightage="80" keywordseo="SnapDeal">Snapdeal</keyword> operate as marketplaces in India thus allowing any retailer or trader to sell goods on their platform. But companies such as <keyword id="64373" type="CITY" weightage="80" keywordseo="Shoppers-Stop">Shoppers Stop</keyword>, <keyword id="6398216" type="COMPANY" weightage="80" keywordseo="Tesco">Tesco</keyword>, <keyword id="6357823" type="COMPANY" weightage="80" keywordseo="Big-Bazaar">Big Bazaar</keyword>, <keyword id="58448" type="COMPANY" weightage="80" keywordseo="Reliance-Retail">Reliance Retail</keyword> and others work only with their chosen vendors, which makes them closed marketplaces. 
 
The two models of retail - online and offline - have different business models and cannot be looked upon with the same lens, said Aamir Jariwala, secretary, E-commerce Coalition of India, which represents firms such as YepMe, Ferns n Petals and IndiaMart, told the Economic Times. 
 Among all eCommerce companies, only <keyword id="6354743" type="COMPANY" weightage="60" keywordseo="Amazon-India">Amazon India</keyword> supports opening up online retail to FDI. 
 <keyword id="113282" type="ORGANIZATION" weightage="80" keywordseo="Retailers-Association-of-India">Retailers Association of India</keyword> (RAI), a lobby organisation for companies such as Reliance Retail and <keyword id="44949" type="CITY" weightage="80" keywordseo="Future-group">Future Group</keyword>, has demanded a clarification from the government about what constitutes a marketplace and sought status equivalent to their online rivals, as several large offline retailers, too, explore opening online fronts. 
 
Many of these online stores that could make use of foreign capital are demanding opening up India's ecommerce sector to 100% FDI. But the move is being opposed by larger online marketplaces such as Flipkart and Snapdeal. The government is hearing various retail industry representatives before framing its policy. 
 
While, traditional retailers such as Shoppers Stop and BigBazaar are putting up a united front with RAI. "A lot of our members are either already running or want to open online channels and get access to foreign capital. This ambiguity on 'retail marketplaces' creates a sense of risk," said Kumar Rajagopalan, chief executive at the lobby group. 
 
Offline retailers are also demanding that the government not differentiate within the retail sector by sales channel for drafting FDI regulations. "Creation of a policy on FDI just for online or offline retail is very myopic. It will create an imbalance in the sector," Rajagopalan said. 
 
Ecommerce firms argue that they will lose a good share of the market due to such policies. 
 
Nasir Jamal, secretary general at ECAI, said financial and strategic investors would flock to offline retail if the government equates online and offline retailers with respect to FDI. "Inventory-led ecommerce companies are facing a capital crunch, and are on the lookout for funds and they also need support," he said. 
 "Offline and online retail is converging and the government should precipitate this by having similar policies," said Nitin Gupta, CEO of <keyword id="1493567" type="UNKNOWN" weightage="80" keywordseo="PayU-India">PayU India</keyword>, owned by South Africa's <keyword id="1634215" type="ORGANIZATION" weightage="80" keywordseo="Naspers-Group">Naspers Group</keyword>. 
 
India's ecommerce trade accounts for 2% of the overall retail sector, which grosses over 31.7 lakh crore ($500 billion) annually. The country's online retail sector grew to $12 billion last year. 
 
(Image: Indiatimes)

Fearing competition, Flipkart, Snapdeal oppose 100% FDI in India’s eCommerce sector

Gandhinagar, <keyword id="7706673" type="General" weightage="20" keywordseo="finance-minister-nirmala-sitharaman" source="Orion">Finance Minister Nirmala Sitharaman</keyword> said on Wednesday exuded confidence that India will become the world's third largest economy worth over USD 5 trillion by 2027-28 and a developed nation by 2047, with GDP touching USD 30 trillion. India, with a GDP of roughly USD 3.4 trillion, is currently the fifth largest economy in the world, after the US, China, Japan and Germany. Sitharaman said during the Amritkal, which will mark 100 years of India's Independence in 2047, emphasis is being given to sunrise industries. Also, the FDI policy of the Narendra Modi Government has helped attract foreign investment, with USD 595 billion coming in the last 9 years. "It is possible that we will be the third largest economy by 2027-28, and our GDP will cross USD 5 trillion by that time. By 2047, it is a conservative estimate that we will reach at least USD 30 trillion in terms of economy," Sitharaman said while addressing a seminar of Vibrant Gujarat Global Summit 2024. Stressing that the people of India have met with the challenges post-COVID and recovery is on a strong footing, she said Gujarat will be the engine of growth in India's march to become a developed economy by 2047. The state has 5 per cent of India's population but contributes 8.5 per cent to the country's GDP. It is rapidly moving forward at 12 per cent CAGR (annual growth) between 2011 and 2021 against a national average of 10.4 per cent, the Union <keyword id="6355261" type="General" weightage="20" keywordseo="finance-minister" source="Orion">Finance Minister</keyword> said. Sitharaman said India is on track to become an in-house producer of semiconductors, and EV adoption is happening in a big way. All of these are the result of the FDI policy being pursued by the government. Between April 2000 and March 2023, in 23 years, India has attracted USD 919 billion in foreign direct investment (FDI). 65 per cent of this, or USD 595 billion, has come in the last 8-9 years, Sitharaman said. "FDI is coming in... where policies bring in greater certainty, convenience, ease of doing business, FDI flows in. Of course, disruptions of higher US Fed rate and other things can divert it elsewhere. But despite that, we have been receiving that kind of flow of the FDI. It is not as if it's coming only for manufacturing, it is coming in the service sector (as well)," she said. Speaking about financial inclusion, Sitharaman said 80 per cent of people have bank accounts. The number of bank account holders increased to 50 crore from 15 crore in 2014.

India to be third largest economy by FY28, a developed nation by 2047: FM

The Confederation of Indian Industries (<keyword id="6358345" type="ORGANIZATION" weightage="100" keywordseo="CII">CII</keyword>) has welcomed the central government's move to raise the limit on <keyword id="44749" type="ORGANIZATION" weightage="100" keywordseo="Foreign-Direct-Investment">foreign direct investment</keyword> (FDI) in the <keyword id="32723" type="COMPANY" weightage="100" keywordseo="Defence">defence</keyword> sector. 
 "FDI is directly linked with core national priorities such as raising manufacturing growth to 25% of the <keyword id="35050" type="CITY" weightage="80" keywordseo="gdp">GDP</keyword>, significant job creation and bringing high-end technology into the country. The associated benefits are the spin-offs for the civilian market,” a CII statement said. 
 
CII is keen to see high-tech system integration work being done in India and it is ready to take this challenge and opportunities. Opening up various sectors have helped the growth of industry. 
 
The manufacturing sector in the country has grown in the last two decades, riding on robust domestic demand and increasing private participation. India has already made its mark in the automobile sector with a number of auto brands across the world sourcing from India, the statement said. 
 
At present, the defence sector contributes between 2.5% and 3% of the global GDP but India's share is too low. India can leverage its purchasing power, IT infrastructure and manufacturing potential to be one of the key global manufacturing hubs for defence systems and equipment, the CII noted. 
 
Raising FDI in the defence sector will create more opportunities in the country. CII said it would endorse the government's initiatives of linking FDI with exports. It also stressed on the need to revisit the export policy and recommended that policies should be industry-friendly and less ambiguous.

Industry Bats For FDI In Defence

New Delhi, Feb 7 () Total foreign direct investment in the drugs and pharmaceutical sector in the country rose to Rs 2,065 crore during April to September period of fiscal year 2019-20, Parliament was informed on Friday. The foreign direct investment (FDI) equity inflow in the drugs and pharmaceutical sector stood at Rs 1,842 crore in FY 2018-19, Minister of State for Shipping and Chemicals &amp; Fertilizers Mansukh Mandaviya said in reply to a question in the Rajya Sabha. FDI in the sector was at Rs 6,502 crore in 2017-18, Rs 5,723 crore in 2016-17, Rs 4,975 crore in 2015-16 and Rs 9,052 crore in 2014-15, he added. To attract larger FDI in the pharmaceutical sector, the government reviews FDI policy on an ongoing basis with a view to liberalise and simplify it progressively and improve the country's investment climate by providing ease of doing business, Mandaviya said. Also, various measures are taken under 'Make in India' initiatives facilitating investment, fostering innovation and thereby promoting robust business environment in the country, he added. "The drugs and pharmaceuticals sector is witnessing an era of unparalleled growth and innovation. Drugs and pharmaceuticals are India's largest sectors- both in terms of revenue and employment," Mandaviya said. The government amended the FDI policy on pharmaceutical sector in June 2016 by allowing 100 per cent FDI for greenfield pharmaceutical projects and up to 74 per cent FDI for brownfield pharmaceutical projects through the automatic route and beyond that through government's approval, he added. FDI is largely a matter of private business decisions and inflows depend on a host of factors such as availability of natural resource, market size, infrastructure, political and general investment climate as well as macro-economic stability and investment decision of foreign investors, Mandaviya added. AKT ABM

You Searched For "India FDI policy" and got 8 results

Goods procured from SEZs by single brand retailers to qualify for meeting local sourcing norms

PTI

Par panel expresses concerns over dip in FDI in manufacturing sector

PTI

Traders' body holds nation-wide protests; demands ban on Amazon, Flipkart

PTI

Amazon and Flipkart accused of violating FDI policy — Indian government asks RBI and ED to take action

IANS

Fearing competition, Flipkart, Snapdeal oppose 100% FDI in India’s eCommerce sector

BI India Bureau

India to be third largest economy by FY28, a developed nation by 2047: FM

PTI

Industry Bats For FDI In Defence

BI India Bureau

FDI in drugs & pharma sector rose to Rs 2,065 cr in April-Sept FY20: Govt

PTI

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