Clarification on FDI Policy on Contract Manufacturing

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..... rom various business entities regarding clarification on FDI Policy on Contract Manufacturing as contained in para 5.2.5.1 of Press Note 4 (2019). In this regard, it is hereby clarified that: S. No Issue Clarification 1 Whether, an entity having foreign direct investment ("Principal") will be deemed to be a manufacturing entity itself, if the manufacturing is done by a third party .....

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..... n the same footing as an entity which manufactures directly. As clarified above, contract manufacturing in India is also covered under the definition of manufacturing provided the manufacturing is done with third party under a legally tenable contract. Further, as per the extant FDI policy, a manufacturer is permitted to sell its products manufactured in India through wholesale and/ or retail, .....

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