Govt makes changes in the FDI rules

Govt makes changes in the FDI rules   In a move under the government tweaked the FDI rules for the country, players like Bharti Wal-Mart are expected to gain on the same.

It is to be mentioned here that the government recently allowed retailers to sell various good sources by the respective companies from the foreign investment funded wholesale venture rather than the earlier condition where the good could only be used for internal use.

However, even now, the limit to such purchases remains at 25% which clearly means that the companies will have to source the rest of the items from outside the sphere of the group. It may be noted here that the government notified the companies about the new guidelines from a circular on FDI.

According to the circular, the changes made to the rules have been done on the request from various companies to make the guidelines for the goods received from stakeholders simpler.

It is to be mentioned here that to preclude the indirect access to the foreign investment in the organised retail sector. For the uninitiated, the restrictions had been hampering the Bharti’s retail plans for the country, which it carries in a JV with Wal-Mart.