NEW DELHI: After proposals of Ministry of Micro, Small and Medium Enterprises (MSME) were ignored while diluting the sourcing rules for foreign direct investment (FDI) in single brand retail, newly appointed MSME Minister KH Muniyappa has stated that the new norms won't impact the SME
After assuming charge as the Minister of State (Independent Charge) for Micro, Small and Medium Enterprises (MSME), Muniyappa said, “With FDI coming in (single-brand retail), it does not mean that it will be a problem for indigenous (small) industry. Our people have to make quality products at par with international ones, to compete globally.”
Muniyappa succeeded Vayalar Ravi who had the extra charge of the Ministry. Before the MSME Ministry, Muniyappa has been the Minister of State for Railways.
Last month, Centre brought changes in the sourcing ruled for FDI crossing 51% in the single-brand retail sector apart from diluting the past condition to source 30% of compulsory sourcing from MSMEs.
Presently, the MSME sector accounts for 8% of India's GDP, 45% of the manufactured output and 40% of exports.