India has activated recent policy changes that liberalised foreign direct
investment (FDI) rules and has spelt out the definition of the term
"manufacturing" to provide clarity to companies and promote
ecommerce.
Under the revised policy, a company
manufacturing goods in India is free to sell online without any restrictions.
However, the term "manufacturing" had not been clearly defined in the
policy.
As per the definition by the Department of
Industrial Policy and Promotion, "any change in the physical object
resulting in transformation of the object into a distinct article with a
different name or bringing a new object into existence with a different
chemical composition or integral structure" would qualify as
manufacturing.
Companies that assemble products in India, such as those in the
automobile and telecom sectors, stand to gain while those that have simply been
processing or relabeling products won't qualify as manufacturers, according to
experts.
No comments:
Post a Comment