goods procured from units in special economic zones sezs by single brand retailers owned by foreign companies would qualify for meeting the mandatory 30 per cent local sourcing conditions according to a government clarificationaccording to the current foreign direct investment fdi policy on single brand retail trading 100 per cent overseas investments are allowed in the sector but sourcing of 30 per cent of the value of goods procured is mandatory from india for such companies having fdi beyond 51 per centthe government has received representations from various business entities seeking clarification whether sourcing of goods from units located in sezs would qualify as sourcing from india as per fdi policy advt as regards sourcing of goods from units located in sezs in india it may be clarified that sourcing of goods from such units would qualify as sourcing from india for the purpose of 30 per cent mandatory sourcing from india for proposals involving fdi beyond 51 per cent subject to sez act 2005 according to the clarificationhowever it said that goods which are proposed to be sourced by a single brand retailer from sez units will have to be manufactured in indiait added that compliance with all the conditions enumerated in the fdi policy and as notified under fema foreign exchange management act would continue to be the responsibility of manufacturing entitysezs developed as export hubs are treated as foreign territory in terms of customs laws procurement of goods and services from units in these zones are treated as importsin february 2006 the government for the first time opened the sector for foreign players by allowing 51 per cent fdi in january 2012 the cap was raised to 100 per cent up to 49 per cent through automatic route and beyond that with the government approvalin january 2018 the government allowed 100 per cent fdi in the sector permitting foreign players in single brand retail trade to set up own shops in india without government approval advt fdi into india grew by 15 per cent to usd 26 billion about rs 185000 crore during aprilseptember 201920 pti published on feb 26 2020 at 0439 pm ist telegram facebook copy link be the first one to comment comment now comments comment now read comment 1 all comments post post find this comment offensive choose your reason below and click on the submit button this will alert our moderators to take actions reasons for reporting foul language defamatory inciting hatred against a certain community out of context spam others report join the community of 2m industry professionals subscribe to our newsletter to get latest insights analysis download etretail app get realtime updates save your favourite articles scan to download app retail special economic zones local sourcing norms single brand retailers sez fdi policy foreign exchange management act goods fdi customs laws homenewsindustrygoods procured from sezs by single brand retailers to qualify for meeting local sourcing norms