In a bid to attract FDI into India, indian government has eased some rules in multi brand retail. These steps are taken because of the fact that even after 10 months of allowing FDI in multi brand retail no major companies have opened their stores in India.
Following are the changes :
- Foreign retailers are now allowed to open stores in cities having population of less than 1 million. Earlier it was not allowed. a relaxation was permitted only in case of states that do not have single city with the population of 1 million.
- Retailers can now source good from medium,small and micro enterprises, where the investment cap will be 2 million (earlier it was 1 million) to comply with their sourcing requirement of 30%.
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