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English Release 17-April 2014
Date Month Year
  • Vice President's Secretariat
  • Vice President Addresses at Golden Jubilee and 48th Convocation of the Indian Institute of Foreign Trade
  • Min of Commerce & Industry
  • Commerce Secretary to Lead High-Level Delegation to India Show in Hong Kong
  • Min of Defence
  • Indian Air Force Placement Cell (IAFPC) and Monster India Collaborate to Foster Job Opportunities for Retired Air Warriors
  • Admiral RK Dhowan PVSM, AVSM, YSM
  • Admiral RK Dhowan Appointed the New CNS
  • Min of Petroleum & Natural Gas
  • Global crude oil price of Indian Basket increased to US$ 107.50 per bbl on 16.4.2014
  • Ministry of Railways
  • Commodity-Wise Freight Revenue Earnings During Fiscal 2013-14
  • Ministry of Water Resources
  • Storage of Important Reservoirs in the Country (As on 27 March 2014)

Previous Date

 
Ministry of Overseas Indian Affairs06-December, 2012 17:59 IST
Impact of FDI on SMEs

The existing policy, allows for 100 per cent Foreign Direct Investment (FDI), in single-brand trade, subject to the condition that in respect of proposals involving FDI beyond 51 per cent, sourcing of 30 per cent of the value of goods purchased, will be done from India, preferably from micro, small & medium enterprise (MSMEs), village and cottage industries, artisans and craftsmen, in all sectors as per Circular 1 of 2012 – Consolidated FDI Policy of DIPP.

FDI complements and supplements domestic investment. The small and medium enterprises (SMEs) would be benefited through FDI, by way of enhanced access to supplementary capital & state-of-the-art technologies, exposure to global managerial practices and technologies as well as opportunities for integration into global markets.

As per existing policy, FDI in MSEs (as defined under Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006) is subject to the sectoral caps, entry routes and other relevant sectoral regulations.

This information was given by the Minister of State (Independent Charge) for Micro, Small and Medium Enterprises, Shri K. H. Muniyappa in a written reply to a question in the Lok Sabha today.

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