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India to permit 100% FDI in single-brand retail - Minister
Dec '11
The Government of India will press ahead with its decision to raise the foreign direct investment (FDI) limit in the country's single-brand retail sector from the existing 51 percent to 100 percent.

During his meeting with representatives of the country's fashion industry at an event in New Delhi, Textiles and Commerce & Industry Minister Anand Sharma said there will not be any break on the issue of allowing 100 percent FDI in single-brand retail and the Government is going ahead with its decision regarding the same.

However, there is a pause in issuing the notification on allowing 51 percent FDI in multi-brand retail due to logjam in Parliament over the issue, the Minister added.

The decision to allow 100 percent FDI in single-brand retail will encourage well-known apparel retailers like GAP (the US), H&M (Sweden), Prada (Italy), and Arcadia Group (the UK) to set up their shops in India.

It will also enable some single-brand global players that are already in India through local partnerships to have complete ownership of business in India. These include Christian Dior (France), Marks & Spencer (the UK), Canali (Italy), Zara (Spain), Louis Vuitton (France) and Jimmy Choo (the UK).

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

Fibre2fashion News Desk - India

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