Sourcing norms force brands to evaluate entry

According to the report, the clause related to 30% sourcing from India for brands seeking 100% foreign direct investment (FDI) in single-brand retail was an obstacle to Ikea's investments in the country. The clause restricting sourcing to cottage industry is absurd. Besides this, units that are...

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Bibliographic Details
Published inMcClatchy - Tribune Business News
Main Author Bansal, Shuchi
Format Newsletter
LanguageEnglish
Published Washington Tribune Content Agency LLC 24.01.2012
Subjects
Advisors
Industrial policy
Norms
Retail stores
Tariffs
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Summary:According to the report, the clause related to 30% sourcing from India for brands seeking 100% foreign direct investment (FDI) in single-brand retail was an obstacle to Ikea's investments in the country. The clause restricting sourcing to cottage industry is absurd. Besides this, units that are a part of the cottage industry would still have to meet international norms on social compliance strictly followed by most major global brands.