The relaxation of norms for foreign direct investment (FDI) in single brand retail in India will immensely boost expansion plans of fast fashion majors, according to a BMI Research report. Rising disposable income, a large young adult consumer base and growth in the middle-income segment also make India a ‘favourable market’ for fashion retailers, it said.

The Fitch group company also sees India's improved 100th position on the World Bank's 'Ease of Doing Business' index among 190 countries to boost foreign investment in the country, according to a news agency report.

The Indian Government recently permitted cent per cent FDI in single brand retail, a move towards allowing foreign players to set up own shops in India without government approval for investments. It also relaxed mandatory local sourcing requirement of 30 per cent.

With rising disposable income, Indian consumers will be able to spend a greater share of their incomes on non- essential goods and services, the report added. (DS)

Fibre2Fashion News Desk – India

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