New Delhi: Amid concessions being sought by the Swedish furniture maker IKEA in FDI norms, Planning Commission Deputy Chairman Montek Singh Ahluwalia on Monday said the government should be willing to review its policies.
"We should have dynamic approach on these matters (opening of single brand retail). In every sector, we start a policy, people who are in the sector or new people coming in, bring to the government's notice that this or that aspect of the policy is not ideal. In my view, we should be always willing to review it," Ahluwalia told reporters.
He was replying to questions regarding the concession being sought by the IKEA, which plans to invest Rs 10,500 crore in single brand retail in India.
IKEA is seeking relaxation in the norms for sourcing of products from the domestic small scale sector.
As per the present policy, for 100 per cent FDI in single brand retail, global firms would have to source 30 per cent of their requirement from small industries which have a total investment in plant and machinery not exceeding USD 1 million.
IKEA had asked the government that it must be allowed to continue sourcing from small units even after the vendors have crossed the mandatory USD one million investment limit.
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