Sourcing norms eased for multi-brand retail

While the condition for mandatory 30 per cent sourcing from the domestic small sector remains in the policy, the definition of small sector has been expanded to include units with total investment in plant and machinery up to $2 million instead of the earlier threshold of $1 million. Moreover, foreign retailers will not have to change their vendors once they outgrow the $2 million investment threshold as the new rules say that the "small industry" status would be reckoned only at the time of first engagement with the retailer. Sourcing from agriculture and cooperatives and farmers cooperatives would also be considered in this category. Exempted foreign retailers from investing in back-end infrastructure beyond the first tranche of investments brought in and allowed stores to come up even in small cities.