Industry And Cluster | News & Insights

EASE IN FDI RULES : WILL BOOST RETAIL, BUT NEED TO MONITOR IMPACT ON MANUFACTURING

Published: August 29, 2019
Author: TEXTILE VALUE CHAIN

The Clothing Manufacturers Association of India (CMAI) welcomes the changes made in the FDI Rules under Single Brand Retail. Giving his reaction on the same, Mr. Rahul Mehta, President, CMAI stated that the ease in FDI Rules will provide Greater Flexibility to Global Fashion Brands. This will help to Improve the Retail landscape of India, Increase Investments, and eventually Employment in the Country.

However, CMAI is concerned that this could possibly affect the Garment Manufacturing in the Country. The eased Rules will provide Greater Liberty to Brands to Source Globally depending mainly on the Cost Competitiveness. This might result in Brands limiting their Sourcing requirement to only 30% in Blocks of 5 Years from India, including Sourcing for Exports. In such a scenario, it is important that these Sourcing Clauses are very closely monitored to ensure that the Sourcing from India is continuously Increasing, so as to be sync with the Make in India drive of the Government.

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