<h1>100% FDI Allowed in Single-Brand Retail; Over 51% Requires 30% Local Sourcing from MSMEs and Artisans.</h1> The current policy permits 100% Foreign Direct Investment (FDI) in single-brand retail, with a stipulation that proposals exceeding 51% FDI must source 30% of goods from India, preferably from micro, small, and medium enterprises (MSMEs), village and cottage industries, artisans, and craftsmen. FDI is seen as a complement to domestic investment, offering SMEs access to additional capital, advanced technologies, and global market integration opportunities. FDI in MSMEs is regulated by sectoral caps and relevant regulations under the Micro, Small and Medium Enterprises Development Act, 2006. This was stated by the Minister of State for MSMEs in the Lok Sabha.