Government clarifies back-end investment norms

The government has clarified the rules relating to foreign investment in back-end of retail sector and it has welcomed investment in supply chain and logistics across the country, irrespective whether a state government has allowed FDI in retail. In addition, foreign retailers in multi-brand retail will also be required to invest in back-end infrastructure. The government had earlier also made it mandatory for foreign retailers to source 30 per cent of processed goods from small
industries, and not wholesale outlets.