Local sourcing rule likely to go away in single-brand retail

NEW DELHI: India could altogether drop the local sourcing requirement for foreign investment in single-brand retailing as it eyes increased investment from companies such as Apple.

“Very clearly it has been stated that for the single brand retail trading local sourcing requirement is somewhat of an anachronistic kind of arrangement… It is not required to be there,” finance secretary Subhash Garg told ET. “That’s what the intent, or that is what the signalling is.”

Responding to a question on whether the clause would be dropped or diluted, Garg said both the approaches will need to be examined.