‘Single brand retail companies should export from India’
New Delhi, July 09: The Confederation of All India Traders (CAIT) has demanded that the single brand retail companies should make exports from India.
The apex body of traders in India has said that the government in the budget has announced some relaxation in foreign direct investment (FDI) in Single Brand Retail that could be perhaps relaxation of 30% local sourcing norms, which might attract more MNCs brand to come in India.
The CAIT feels that it is a very sensitive matter having greater implications on domestic trade.
CIAT secretary general Praveen Khandelwal says that if government intends to relax local sourcing norms, it should also simultaneously direct any such MNCs to produce their products in India under Make In India scheme and provide that such Companies will export their products from India to other Countries.
"It will be a win win situation for both sides as India's exports will become much better and Country will be able to earn substantial foreign exchange and employment will also be generated," says Khandelwal.
He adds that government should also create a mechanism under which it could be checked that such MNCs should not be indulged into under-pricing or predatory pricing in order to control the market.
"There has to be a fair competition and even level playing field for all so that domestic traders and small Industries are not hurt," asserts Khandelwal.
While presenting the Union Budget 2019 on Friday, Finance Minister Nirmala Sitharaman said, "Global FDI flows slid by 13% in 2018 to $1.3 trillion from $1.5 trillion, as per the world investment report... India's inflows remained strong at $64.37 billion marking a 6% growth over previous year. I propose to further consolidate the gains in order to make India a more attractive FDI destination. Local sourcing norms will be eased for FDI in single brand retail sector."
India mandates that single brand companies opting for more than 51% foreign investment must source 30% of their products locally.