Foreign retailers can source from anywhere in India: Sharma

Agra: Commerce and Industry Minister Anand Sharma today said it would be up to global retail chains to source products from across India or from a state depending on logistics as 100 percent FDI is allowed in back-end chain.

The minister, who had met Walmart International CEO Doug McMillon and Tesco Chairman Richard Broadbent separately in Davos last week, also said they were seeking clarity on India’s FDI policy in retail.

“… if the front-end is open in one area or one state or two states, but if the sourcing area (is) in the neighbourhood, there is no restriction. Same for SMEs. SMEs sourcing will be from the entire country, agro sourcing will be from the entire country, so it is their (foreign retailers) decision depending upon the logistics,” Sharma said.

In the back-end, 100 percent FDI is allowed and sourcing is allowed from across the entire country, he added.

When asked about his meetings with McMillon and Broadbent and what were their apprehensions, he said: “When a policy is made, naturally investors would like greater clarity.” The minister further said: “Like if they open up in one state and when it comes to the sourcing areas, is it restricted to that state? Or can they source from the region?”

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Last week, the minister had assured the global retail giants that India would hand-hold them for their entry into the multi-brand retailing in the country on the sidelines of the annual World Economic Forum conference.

[caption id=“attachment_605376” align=“alignleft” width=“380”] Last week, the minister had assured the global retail giants that India would hand-hold them for their entry into the multi-brand retailing in the country. Reuters[/caption]

“India’s policy on FDI in multi-brand retail has finality and they need not be unduly concerned about any policy reversal,” the minister had said.

Sharma said the entire economic scene in the world was undergoing rapid changes and emerging economies like India, China, Russia, Brazil and South Africa had come up in a big way and were dominating the world.

Further, he said as far as India was concerned the priorities before the government were inclusive growth and job creation. There was need for creation and redistribution of wealth for inclusive growth. If the youths were not provided with jobs in India and the rest of the world, the social consequences would be terrible, Sharma said.

As things were turning out there was going to be a huge shortage of both skilled and semi-skilled workers, as many as 85 million workers being needed in the next few years, he said. To address this issue, there is a need for doubling the

number of institutions like ITIs, IITs and IIMs.

When asked if he tried to convince UP Chief Minister Akhilesh Yadav on allowing FDI in multibrand retail, Sharma said: “I have not come here to discuss central policy initiatives particularly this one. UP is a state like any other state to make its choice one way or the other.He said as of today 11 states have come forward asking for the policy to be implemented and the remaining will make their own choices. The UP government is opposing the Centre allowing FDI in multibrand retail.

He also informed that the central government would fund projects worth Rs 3,436 crore in Uttar Pradesh. The projects include Delhi-Mumbai Industrial Corridor (Rs 2,500 crore), which is passing from the state, mega leather cluster (Rs 125 crore), ASIDE (Rs 265 crore) and a handicraft mega cluster at Moradabad and Bhadohi (173 crore).

PTI