To attract leading international retailers for sourcing their garment and home textiles requirements from India, the Consolidated FDI Policy Circular 2020 mentions:
For Single Brand Product Retail Trading:
| Sector/ Activity | % of Equity/ FDI cap | Entry Route |
| Single Brand Product Retail Trading | 100% | Automatic |
Further, in respect of proposals involving foreign investment beyond 51%, sourcing of 30% of the value of goods purchased, will be done from India, preferably from MSMEs, village and cottage industries, artisans and craftsmen, in all sectors.
For Multi Brand Retail Trading:
| Sector/ Activity | % of Equity/ FDI cap | Entry Route |
| Multi Brand Retail Trading | 51% | Government |
Further, at least 30% of the value of procurement of manufactured/ processed products purchased shall be sourced from Indian micro, small and medium industries, which have a total investment in plant & machinery not exceeding US$ 2.00 million.
In order to work out annual sourcing plans with Bangladesh for increasing exports of textiles as part of strategic engagement, the India Bangladesh Textile Industry Forum (IBTIF) has been institutionalized. The 1st meeting of IBTIF was held on 4-5 February, 2020 under the leadership of Secretary (Textiles).
Ministry of Textiles has conducted a Symposium with Textile Export Promotion Councils and other industry stakeholders for finalizing a list of potential textiles and apparel export products for which exports can be enhanced. The list of potential export products were shared with the Indian Missions abroad for identification of potential buyers in the respective countries.
