Major single-brand retailers, including IKEA and H&M, Friday hailed the government’s budget proposal to ease local sourcing norms for foreign direct investment in the sector. Industry experts opined that the budget proposal would help attract more foreign players to invest in India. Under the current norms, 100 per cent FDI is permitted in the single-brand retail trade with a rider of 30 per cent mandatory local sourcing to promote micro, small & medium enterprises (MSMEs).

Publication : Financial Express

Date : July 5, 2019

“The Indian Government’s priority to bring about ease of doing business for companies is encouraging. IKEA is committed to increasing local sourcing from India,” IKEA India CEO Peter Betzel said. H&M India Country Manager Janne Einola also hailed the proposal to ease local sourcing norms. “While we don’t see the details of the proposal currently, we are happy to see the intent of the government to ease sourcing norms for FDI in single-brand retail to drive ease of doing business in India,” Einola said. Currently, the FDI policy on single-brand retail trade (SBRT) provides for a 30 per cent local sourcing preferably from MSMEs.

Publication : Orissa Post

Date : July 6,  2019

Planned amendments to various laws will bring down the cost of digital transactions The Narendra Modi government, since its inception, has been promoting digital payments to make digital inclusion the cornerstone of the economy. For further transparency in digitization, it has proposed more initiatives for digital payments in the Budget. Finance Minister Nirmala Sitharaman said that the government has taken a number of initiatives in the recent past for the promotion of digital payments and a less-cash economy, and to push this further, she proposed a slew of measures.

Publication: The Hindu Business Line

Date: July 5, 2019

Union Finance Minister Nirmala Sitharaman on Friday proposed relaxing local sourcing norms in foreign direct investment (FDI) in single-brand. This proposal is likely to bring good news for single-brand retailers such as Ikea, H&M, and those in the queue, such as Apple. More brands may join the line if the relaxations are significant. Currently, the FDI policy allows 100% foreign investment in single-brand retail under the automatic route, but requires an investor to source 30% preferably from Micro, Small and Medium Enterprises (MSMEs), village and cottage industries, artisans and craftsmen.

Publication: News18, Economic Times,

Date: July 5, 2019

The government will set-up a new TV programme on DD, exclusively for startups in the country Several changes across labour laws, education and rental housing to have a direct impact on startups in the country. They include a TV programme exclusively for startups, easing foreign direct investment rules into startup segments like grocery, e-commerce and food delivery, proposing a host of enhancements to the digital payment systems ecosystem that would help fintech startups, incentives for electric vehicles that would help EV startups, and ensuring that startups do not feel the heat of angel tax from I-T authorities.

Publication: Livemint

Date: July 5, 2019