Commerce and Industry Minister Anand Sharma today said it would be up to global retail chains to source products from across India or from a state depending on logistics as 100 per cent FDI is allowed in back-end chain.
The minister, who had met Walmart International CEO Doug McMillon and Tesco Chairman Richard Broadbent separately in Davos last week, also said they were seeking clarity on India's FDI policy in retail.
"... if the front-end is open in one area or one state or two states, but if the sourcing area (is) in the neighbourhood, there is no restriction. Same for SMEs. SMEs sourcing will be from the entire country, agro sourcing will be from the entire country, so it is their (foreign retailers) decision depending upon the logistics," Sharma said.
In the back-end, 100 per cent FDI is allowed and sourcing is allowed from across the entire country, he added.
When asked about his meetings with McMillon and Broadbent and what were their apprehensions, he said: "When a policy is made, naturally investors would like greater clarity."
The minister further said: "Like if they open up in one state and when it comes to the sourcing areas, is it restricted to that state? Or can they source from the region?"
Last week, the minister had assured the global retail giants that India would hand-hold them for their entry into the multi-brand retailing in the country on the sidelines of the annual World Economic Forum conference.
"India's policy on FDI in multi-brand retail has finality and they need not be unduly concerned about any policy reversal," the minister had said.
Sharma said the entire economic scene in the world was undergoing rapid changes and emerging economies like India, China, Russia, Brazil and South Africa had come up in a big way and were dominating the world.
He said the concept of growth had been technically redefined and as much as 80 per cent of the industrial output was coming from the emerging economies.
Further, he said as far as India was concerned the priorities before the government were inclusive growth and job creation.
There was need for creation and redistribution of