Interviews
India permits 100% FDI in single-brand retail
11 Jan '12
1 min read
The Indian government has formally issued a notification permitting 100 percent foreign direct investment (FDI) in single-brand retail, from the earlier policy of 51 percent.
Until now, global retailers owning a single-brand had to partner with an Indian entity, as the cap on foreign equity was 51 percent.
However a clause which makes it mandatory for retailers to source 30 percent of their products sold from the Indian small/village/cottage industries may not go down well with those global retailers either planning to hike or mulling new investments.
According to the government, this move will help attract investments in production and marketing and encourage sourcing of goods from India.
This decision however, has paved the path for 100 percent FDI in multi-brand retail in the near future.
Until now, global retailers owning a single-brand had to partner with an Indian entity, as the cap on foreign equity was 51 percent.
However a clause which makes it mandatory for retailers to source 30 percent of their products sold from the Indian small/village/cottage industries may not go down well with those global retailers either planning to hike or mulling new investments.
According to the government, this move will help attract investments in production and marketing and encourage sourcing of goods from India.
This decision however, has paved the path for 100 percent FDI in multi-brand retail in the near future.
Fibre2fashion News Desk - India
Popular News
Leave your Comments
Editor’s Pick
C Devarajan & P Raajashekar
Texvalley
Andreas Rass
ZIMMER AUSTRIA | Digital Printing Systems
Anita Dongre & Yash Dongre
House of Anita Dongre Limited
Esteemed Clients
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
