The minister of MSME on Thursday, informed Rajya Sabha that his ministry hasnt received any proposal for diluting the guidelines for foreign single brand investors. There is no proposal with this ministry at present for diluting FDI guidelines in single brand retail, Ravi said.
Ravi had earlier told FE that no relaxation would me made for any foreign investors as far as his ministry is concerned. They (ministry of commerce) cant to do it without my consent, Ravi had told FE.
To facilitate Swedish furniture giant IKEAs investment proposal of R10,500 crore and other foreign single brand investors, ministry of commerce has been pushing for relaxation in the mandatory 30% local sourcing norm. To assure an investment friendly environment in the country, the ministry had also moved a Cabinet note earlier last month proposing that that local sourcing should preferably be done from small industries where it is feasible.
The ministry of commerce is also working on changing the definition of MSME to make it suitable for foreign giants like IKEA to invest in India as IKEA had argued that once its starts sourcing from SMEs they profit will increase and they may nor remain SMEs.
Several suggestions for the amendment to the Micro, Small and Medium Enterprises Act 2006 have been received from various associations, Ravi informed the parliament on Thursday.
However, Ravi had earlier told FE that he wont change the definition for any foreign company if it hurts the interest of small and medium industries.