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Government considering 100% FDI in single brand retail
Jan '17
The Government of India is looking at allowing 100 per cent foreign direct investment (FDI) through automatic route for single brand retailers in a bid to attract more global players to India. The government currently permits FDI up to 49 per cent under the automatic route in this sector. Government’s permission is required beyond this limit.

Products introduced under FDI in India need to be of a single brand and should be sold globally under the same brand. For proposals involving FDI of 51 per cent or more, it is necessary to source at least 30 per cent goods from the small-scale sector of the country.

The ministry of commerce and industry and the ministry of finance are discussing the issue of easing the FDI policy for the sector. Single brand retail sector has a lot of potential of attracting FDI and the government wishes to provide easy policies for domestic as well as foreign investors, said a news agency citing a source.

The mandatory sourcing from local MSMEs was tweaked by the government last year. It agreed to exempt foreign firms from the norm for three years if they bring state-of-the-art technology to the country.

FDI in India touched $40 billion in 2015-16, a 29 per cent rise from $30.93 billion in 2014-15. (KD)

Fibre2Fashion News Desk – India

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January 2022

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