Ministry in favour of raising investment cap for SMEs
28 July 2013 4:47 AM IST
Micro, Small and Medium Enterprises (MSME) Minister K H Muniyappa is in favour of increasing the investment cap to $2 million in small and medium units, from which global retailers have to source 30 per cent of items under the multi-brand retail policy.
As per the current FDI policy, multi-brand retailers must procure 30 per cent of their products mandatorily from small and medium enterprises (SMEs) with an investment in plant and machinery not exceeding $1 million.
'This will help the units to grow further,' Muniyappa said at the launch function of an SME-focused news agency - Knowledge and News Network (KNN).
The Department of Industrial Policy and Promotion, in a draft Cabinet note, had proposed increasing the investment cap to $ 2 million. It had also said that multi-brand retailers should continue sourcing items from SMEs without a time cap even after they cross the investment limit and can no longer be considered small and medium.
As per the current FDI policy, multi-brand retailers must procure 30 per cent of their products mandatorily from small and medium enterprises (SMEs) with an investment in plant and machinery not exceeding $1 million.
'This will help the units to grow further,' Muniyappa said at the launch function of an SME-focused news agency - Knowledge and News Network (KNN).
The Department of Industrial Policy and Promotion, in a draft Cabinet note, had proposed increasing the investment cap to $ 2 million. It had also said that multi-brand retailers should continue sourcing items from SMEs without a time cap even after they cross the investment limit and can no longer be considered small and medium.
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