100% single-brand retail FDI notified
The Centre on Tuesday notified 100 per cent foreign direct investment in single-brand retail, sending a strong signal to investors that the government was determined to push reforms.
The UPA-2 governme-nt’s decision in Nove-mber to allow 51 per cent FDI in multi-brand retail had come under sharp attack from the Oppo-sition and some of its allies, which forced the government to backtrack. But it has managed to push forward the parallel decision to hike FDI in single-brand retail to 100 per cent. This paves the way for the entry, among others, of Swedish furniture giant Ikea, which had said it would enter India only when investment restrictions were completely eased. Till now, a maximum of 51 per cent FDI was permitted in single-brand retail.
“We have allowed foreign investment upto 100 per cent with the stipulation that (for) FDI proposals beyond 51 per cent there will be mandatory sourcing of at least 30 per cent from Indian small industries/village and cottage industries, artisans and craftsmen,” said commerce minister Anand Sharma.
One condition is that products should be sold under the same brand internationally, meaning in one or more countries besides India.
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