Ahead of the official notification allowing up to 51 percent FDI in multi-brand retail, India Inc Monday asked the government to clarify whether the 30 percent procurement from small and medium enterprises (SMEs) clause applied globally or was restricted to domestic enterprises.

“There is confusion on the clause. We want to know whether it is for Indian SMEs or applies globally,” said Sanjay Bhatia, chair of a FICCI committee on micro, small and medium enterprises.

“We want that 30 percent mandatory sourcing should be from Indian SMEs only. We will formally ask the government in a couple of days to clarify on the issue,” Bhatia, who is also managing director of Hindustan Tin Works Ltd, told IANS.

The cabinet headed by Prime Minister Manmohan Singh last week gave green signal to allow up to 51 percent foreign direct investment in multi-brand retail and raised the limit in single-brand retail from 51 percent to 100 percent.

The official documents said it will be mandatory for the retailers to source at least 30 percent of the goods from small and medium enterprises. However, there is no clarity whether the mandatory 30 percent sourcing will be from Indian enterprises or globally.