Tuesday 10 January 2012
FDI in retail - Govt clears 100 per cent FDI in single-brand retail
The government on Tuesday cleared 100 per cent FDI in single-brand retail, paving way for global chains like Adidas, Nike, Louis Vuitton and Gucci among others to have full ownership of their India operations.
At present, 51 per cent FDI is permitted for single-brand retailers.
The decision to increase foreign direct investment (FDI) in single-brand retail was taken by the Cabinet on November 24 along with opening the gates for overseas investment in multi-brand retail.
However, the government was forced to put on hold its decision on the latter amid protests by several political parties, including one of the UPA allies - Trinamool Congress.
Department of Industrial Policy and Promotion (DIPP) Secretary PK Chaudhery had on January 6 assured reporters that a notification from the government 100 per cent FDI in single-brand retail would come soon.
Removal of investment cap will help global fashion brands, especially from Italy and France, to strengthen their interest in the growing Indian market - giving them the option of buying out their domestic joint venture partners.
At present, 51 per cent FDI is permitted for single-brand retailers.
The decision to increase foreign direct investment (FDI) in single-brand retail was taken by the Cabinet on November 24 along with opening the gates for overseas investment in multi-brand retail.
However, the government was forced to put on hold its decision on the latter amid protests by several political parties, including one of the UPA allies - Trinamool Congress.
Department of Industrial Policy and Promotion (DIPP) Secretary PK Chaudhery had on January 6 assured reporters that a notification from the government 100 per cent FDI in single-brand retail would come soon.
Removal of investment cap will help global fashion brands, especially from Italy and France, to strengthen their interest in the growing Indian market - giving them the option of buying out their domestic joint venture partners.
