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FDI in retail of Single Brand Products
22 Mar '07
2 min read
The extant policy on FDI in retail of Single Brand Products will encourage investments in production and marketing, improving the availability of such goods for the consumer, encouraging increased sourcing of goods from India, and will help enhancing competitiveness of Indian enterprises through access to global designs, technologies and management practices, Shri Ashwani Kumar, Minister of State for Industry said while giving a written reply to a question raised in the Rajya Sabha.
As per the extant policy Foreign Direct Investment (FDI) up to 51% is allowed with prior Government approval, in retail trade of 'Single Brand' products. Guidelines notified, vide Press Note 3 (2006 Series), require:
• Products to be sold should be of a 'Single Brand' only.
• Products should be sold under the same brand internationally.
• 'Single Brand' product-retailing would cover only products which are branded during manufacturing.
The Government has recently entrusted a reputed research organisation, Indian Council for International Economic Research (ICRIER), to conduct a comprehensive impact assessment of the participation of large foreign and domestic companies in the retail sector with reference to the small scale retailers and vendors, the Minister said.
Government has put in place a liberal and transparent policy for Foreign Direct Investment (FDI). The policy on FDI is reviewed on an on-going basis through inter-Ministerial consultations and proposal to allow sector-specific FDI has been mooted, he added.
As per the extant policy Foreign Direct Investment (FDI) up to 51% is allowed with prior Government approval, in retail trade of 'Single Brand' products. Guidelines notified, vide Press Note 3 (2006 Series), require:
• Products to be sold should be of a 'Single Brand' only.
• Products should be sold under the same brand internationally.
• 'Single Brand' product-retailing would cover only products which are branded during manufacturing.
The Government has recently entrusted a reputed research organisation, Indian Council for International Economic Research (ICRIER), to conduct a comprehensive impact assessment of the participation of large foreign and domestic companies in the retail sector with reference to the small scale retailers and vendors, the Minister said.
Government has put in place a liberal and transparent policy for Foreign Direct Investment (FDI). The policy on FDI is reviewed on an on-going basis through inter-Ministerial consultations and proposal to allow sector-specific FDI has been mooted, he added.
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