India Business Law Journal: Amendments bring clarity for foreign-owned retailers

The Department for Promotion of Industry and Internal Trade (DPIIT) released Press Note 4 of 2019 on 18 September 2019 introducing, among other matters, changes to the policy for foreign direct investment (FDI) in contract manufacturing and single brand retail trading (SBRT). With regard to SBRT, the press note permits (a) the commencement of online retail prior to opening physical stores, provided that physical stores are opened within two years of the commencement of online retail, and (b) the inclusion of the export of locally sourced products for global operations towards the mandatory requirement for 30% local sourcing.

These changes are expected to benefit players such as Apple, which can now procure devices manufactured in India on a contract basis