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For each product? You can't sell any product unless 30% of it was made in India?
by ikeboy 10y ago
For each product? You can't sell any product unless 30% of it was made in India?
- pcurve 10y agooh no definitely not. For company product aggregate. http://www.franchisetimes.com/May-2015/How-Indias-investment-laws-affect-franchisors/ http://www.franchisetimes.com/May-2015/How-Indias-investment... 'All multi-brand retail operations with FDI must be locally sourced with at least 30 percent of the value of manufactured/processed products from Indian “small industries,” which have a total investment in plant and machinery not exceeding U.S. $1 million. ' Quite a tall order still.
- ikeboy 10y agoBut then how can you know how much will sell ahead of time? Suppose I have exactly two products, one fully sourced from India, one sourced elsewhere. The legality depends on whether the first sells more than a 7:3 ratio over the second, which can't be determined before actually selling.
- pcurve 10y agoYou're right and I don't know the details. But I assume you'd have to provide plausible sales projection data to the authority, and then have periodic audits.
- RealGeek 10y agoThese FDI restrictions were placed for multi-brand retail stores like Walmart. I guess Apple stores are considered multi-brand because they sell some products from other brands as well. These restrictions are only for foreign companies. An Indian company can sell 100% imported products without any restrictions, but they are required to pay import duty.