INDIA: Union Cabinet approves proposal for amendments to India Foreign direct investment (FDI) policy in Multi-Brand Retail Trading

Friday August 2 2013

The Union Cabinet of India has approved amendments to India Foreign Direct Investments Policy in multi-brand retailing contained in Circular 1 of 2013. The changes have been introduced to extend the FDI policy to small industries in renewed attempt to attract foreign supermarket operators to India. The main changes to Circular 1 of 2013 include:

• An amendment to paragraph 6.2.16.5(1) (iii) so that subsequent investment in back-end infrastructure can be made by the MBRT retailer as needed, depending upon his business requirements.
• An amendment to paragraph 6.2.16.5(1)(iv) to bring micro and small industries within the scope of the policy. The level of investment these industries must have in plant and machinery these industries has been increased from USD 1 million to USD 2 million.

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