H&M “delighted” at government’s FDI regulations amendment

By

Isabelle Crossley

Published
Aug 29, 2019

H&M has voiced its support for the central government’s recent amendments to its foreign direct investment regulations and is “delighted” at changes made to local sourcing norms.

On August 28, the central government announced that it amended FDI regulations for single-brand retail and eased local sourcing norms. The definition of the FDI regulations’ 30% direct sourcing requirement now also includes sourcing for a business’ global operations and single-brand retailers are also now allowed to begin retailing online without first setting up a brick-and-mortar store.

"We are delighted,” H&M’s India country manager Janne Einola said about the government’s announcement, as reported by the Press Trust of India. “H&M has been sourcing from India since the last 30 years for its international markets. It's great to see global sourcing is now part of the 30% local sourcing norms.” 

"We see this supporting the ease of doing business in India and driving in larger investments from global companies," said Einola. H&M’s managing director Fredrik Olsson had said earlier in the month that the business is committed to continued investments and growth in India and had called for an increase in ease of doing business in the country.