Not worried on WTO fallout in single brand FDI: Government
Immediately after the notification on January 10, the Federation of Indian Micro, Small and Medium Enterprises (Fisme) had expressed doubts whether domestic MSEs would benefit.
Government on Friday said that it is not unduly worried on any WTO implications of the decision to make 30 per cent sourcing compulsory from domestic small firms by foreign single brand retailers.
"When government takes a decision, it is after due consideration and after taking views of all the concerned departments," Minister of Micro, Small and Medium Enterprises (MSME) Virbhadra Singh told PTI.
He asserted this, when asked whether the decision can be challenged in the World Trade Organisation (WTO).
"Nobody can stop anybody from challenging it, they can challenge it. We will cross the bridge when it comes," he said.
The government has notified 100 per cent foreign direct investment (FDI) in single-brand retail paving the way for foreign brands like Reebok and Nike to have complete stake in their retail outlets in India.
But, the decision has a rider for compulsory sourcing of at least 30 per cent of goods from domestic small and cottage industries by the foreign retailers who want to have more than 51 per cent holding in their Indian ventures.
Singh also sought to allay concerns of the domestic small industries over implementation of the decision on FDI in single brand retail.
Immediately after the notification on January 10, the Federation of Indian Micro, Small and Medium Enterprises (Fisme) had expressed doubts whether domestic MSEs would benefit.
According to the government, the sourcing from local industry would help generate jobs and add value to Indian products.