Comments
Indicating that concerns on local sourcing expressed by US-based electric car maker Tesla are unfounded, the Centre has clarified that the FDI policy does not mandate minimum sourcing of components by manufacturers.
“We have already clarified through our Twitter response that sourcing conditions are mandated only for retail trading of goods and not for manufacturing in the country,” Commerce & Industry Minister Nirmala Sitharaman said at a press conference here on Tuesday.
“After manufacturing in India, a foreign investor is permitted to sell in any manner: wholesale, retail including e-commerce,” said a tweet from the Department of Industrial Policy & Promotion (DIPP).
“It is only for retail trading of goods that sourcing conditions are mandated. Conditions not applicable to manufacturers as goods are manufactured in India,” the tweet added.
The DIPP tweet was in response to apprehensions expressed by Tesla founder Elon Musk that the company would have to source a certain percentage of local components to set up plant in India.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.