Home / Knowledge / News / Apparel/Garments / Indian govt opens FDI route in supermarkets with riders
Indian govt opens FDI route in supermarkets with riders
15
Sep '12
The Government of India’s decision to allow up to 51 percent foreign direct investment (FDI) in multi-brand retail sector will come with riders.
 
As per the Government’s directive, global multi-retail chains like Wal-mart, Tesco and Carrefour would have to take approval from the Foreign Investment Promotion Board (FIPB) if they intend to invest in India.
 
The Government has also put up a minimum US$ 100 million investment cap for those willing to enter the giant Indian retail sector.
 
For FDI in India’s multi-brand retail sector, a minimum of 50 percent of total investment should be in “back-end infrastructure”.
 
The 30 percent local procurement clause, as applied to FDI in single-brand retail, would also be applicable for multi-national retail brands eager to set up supermarkets in India, according to the Government.
 
Above all, the retail chains would be allowed to be set up only in any of the 51 Indian cities that have a population of over one million, as per 2011 census.
 
The guidelines state that multi-brand retail outlets would have to be set up only in those states that have already agreed or will agree in future to the 51 percent FDI proposal.
 
So far, Andhra Pradesh, Assam, Haryana, Delhi, Rajasthan, Manipur, Uttarakhand, and Jammu & Kashmir states have expressed their support to the policy.
 

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 20th Jan 2017

TEA expects budget to upscale textile skill industry

The Tiruppur Exporters’ Association (TEA) has requested the Central...

Textiles | On 20th Jan 2017

Bangladesh could earn $60 billion in exports by 2021

Bangladesh is expected to earn over $60 billion in exports by the...

Courtesy: PIB

Textiles | On 20th Jan 2017

Govt to help Tangaliya weavers purchase looms: Irani

Government of India will facilitate Tangaliya weavers in purchase of...

Interviews View All

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Eamonn Tighe
Nature Works LLC

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

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

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
January 2017

January 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search