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No compromise on interest of small, medium industries: Ravi
Amid demands from global retailers to relax mandatory sourcing norm to set up stores in India, MSME Minister Vayalar Ravi on Monday said the government would not “compromise” on interest of small industries.
Ravi, who has taken the additional charge of the Ministry of Micro, Small and Medium Enterprises (MSME), also said if foreign players want to set up chains in India, they have to abide by domestic regulations.
“If they want to stay in India, they have to go by Indian regulations. If they don't want they can go, who is stopping them,” he told reporters here.
Swedish home furnishing major IKEA, which has proposed to invest `10,500 crore to set up 25 stores in the country, has asked the government to relax the mandatory condition of 30 per cent sourcing from Indian small-scale units.
“We have to protect our SMEs and there is no compromise on that part,” Ravi added.
The Government has eliminated 51 per cent cap on foreign direct investment (FDI) for single brand retailers like IKEA, Adidas, Louis Vuitton and Gucci.
However, those opting for taking FDI beyond 51 per cent will have to source at least 30 per cent of their merchandise from the domestic micro and small enterprises.present, a company up to investment of `5 crore qualifies to be called micro and small enterprise.
Amid demands from global retailers to relax mandatory sourcing norm to set up stores in India, MSME Minister Vayalar Ravi on Monday said the government would not “compromise” on interest of small industries.
Ravi, who has taken the additional charge of the Ministry of Micro, Small and Medium Enterprises (MSME), also said if foreign players want to set up chains in India, they have to abide by domestic regulations.
“If they want to stay in India, they have to go by Indian regulations. If they don't want they can go, who is stopping them,” he told reporters here.
Swedish home furnishing major IKEA, which has proposed to invest `10,500 crore to set up 25 stores in the country, has asked the government to relax the mandatory condition of 30 per cent sourcing from Indian small-scale units.
“We have to protect our SMEs and there is no compromise on that part,” Ravi added.
The Government has eliminated 51 per cent cap on foreign direct investment (FDI) for single brand retailers like IKEA, Adidas, Louis Vuitton and Gucci.
However, those opting for taking FDI beyond 51 per cent will have to source at least 30 per cent of their merchandise from the domestic micro and small enterprises.present, a company up to investment of `5 crore qualifies to be called micro and small enterprise.
