INDIA: 100% India foreign investment permitted in single-brand retail

Thursday January 12 2012

Further to the update of 6 December, the Government of India has reviewed the extant policy on India foreign investment (FDI) and decided that India FDI, up to 100%, under the government approval route, would be permitted in Single-Brand Product Retail Trading, subject to the following specified conditions:

(a) Products to be sold should be of a ’Single Brand’ only.

(b) Products should be sold under the same brand internationally i.e. products should be sold under the same brand in one or more countries other than India.

(c) “”Single Brand”” product-retail trading would cover only products which are branded during manufacturing.

(d) The foreign investor should be the owner of the brand.

(e) In respect of proposals involving FDI beyond 51%, mandatory sourcing of at least 30% of the value of products sold would have to be done from Indian ’small industries/ village and cottage industries, artisans and craftsmen;

“Small industries” would be defined as industries which have a total investment in plant & machinery not exceeding US $ 1 million.

Applications seeking permission of the Government for FDI in retail trade of “”Single Brand”” products would be made to the Secretariat for Industrial Assistance (SIA) in the Department of Industrial Policy & Promotion.

Click on the above link for more details.