The government may soon notify 100 per cent foreign direct investment in single-brand retail, paving way for global chains like Adidas, Nike, Louis Vuitton, Hermes and Gucci to have full ownership of their India operations.
"Soon", said Secretary in the Department of Industrial Policy and Promotion (DIPP) P. K. Chaudhery, when asked on Friday about the notification of 100 per cent FDI in single-brand retail.
The decision to increase FDI in single brand retail was taken by the Cabinet on November 24 along with opening the gates for overseas investment in the multi-brand retail.
However, the government was forced to put on hold FDI in multi-brand retail by several political parties,including UPA ally Trinamool Congress.
Presently, for single brand retailers, 51 per cent FDI is permitted. Removal of investment cap would help global fashion brands especially from Italy and France to strengthen their interest in the growing Indian market.
Most of the big names have already set up their operations in the country with joint ventures with Indian partners. The new policy would allow them to buy out the domestic partners.