Home / Knowledge / News / Apparel/Garments / India puts 51% FDI in multi-brand retail on hold
India puts 51% FDI in multi-brand retail on hold
08
Dec '11
The Indian Government has put on hold the earlier Cabinet decision to allow up to 51 percent foreign direct investment (FDI) in multi-brand retail, to buy peace with the Opposition and allies who have been disrupting the proceedings of the Parliament on the issue.

However, the Government will be moving ahead with the November 24 Cabinet decision to raise the foreign investment level for single-brand retail in India from the current 51 percent to 100 percent. This will help some of the well-known apparel single-brand firms that are keen on entry into India such as Hennes and Mauritz (Sweden), GAP (the US), Prada (Italy), and Arcadia Group (the UK).

Some global single-brand players are already in India through local partnerships. These include apparel brands like Christian Dior (France), Marks & Spencer (the UK), Canali (Italy), Zara (Spain), Louis Vuitton (France) and Jimmy Choo (the UK). For these companies, the condition of 30 percent sourcing from the small-scale sector will become applicable the moment their foreign equity exceeds 51 percent.

The 30 percent sourcing from the small-scale sector will also be applicable to new single-brand retail companies entering India with more than 51 percent share, under the latest decision.

Meanwhile, the Government has not announced any specific date to reconsider and take a decision regarding allowing 51 percent FDI in multi-brand retail. The proposed FDI in retail was subject to stringent conditions that included an investment of at least US$ 100 million, of which 50 percent was needed to be used on back-end infrastructure.

However, back-channel negotiations with opposition parties and other stakeholders are likely to continue in order to arrive at a consensus decision. Some sections of the industry have already suggested allowing 49 percent FDI in multi-brand retail, instead of the earlier proposed 51 percent, to tone down the issue.

At present, FDI in cash and carry segment is permitted up to 100 percent, while no foreign investment is allowed in multi-brand retail.

Fibre2fashion News Desk - India


Must ReadView All

Apparel/Garments | On 23rd Sep 2017

AAFA urges negotiators to preserve TPLs in NAFTA

The American Apparel & Footwear Association (AAFA), an alliance of...

Textiles | On 23rd Sep 2017

SIMA urges Centre to re-look duty drawback rates

he Southern India Mills’ Association (SIMA) has appealed to the...

Textiles | On 23rd Sep 2017

PKR 690.65-mn budget for Pakistan Cotton Committee

The Pakistan Central Cotton Committee (PCCC) recently approved a PKR...

Interviews View All

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Subhashini Srinivasan
The S Studio

Ethnicwear market will see an upward trend if uniqueness and quality are...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

September 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search