Foreign direct investment expands retail trade

By Shardul Thacker, Mulla & Mulla & Craigie Blunt & Caroe
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The retail trade sector in India has undergone significant transformation from small, unorganized family-owned retail units to organized retailing pursuant to the influx of international retailers in domestic markets.

Shardul Thacker, Partner, Mulla & Mulla & Craigie Blunt & Caroe
Shardul Thacker
Partner
Mulla & Mulla & Craigie Blunt & Caroe

Organized retail trade, predominantly concentrated in urban areas, constitutes approximately 4% of retail trade in India.

The US$350 billion Indian retail trade sector is estimated at US$427 billion over the next three years.

Policy initiatives

To accelerate the inflow of foreign direct investment (FDI), Government of India (GOI) has partially opened up the retail trade sector to foreign entities for establishment of retail trade operations of “Single Brand” products with FDI up to 51% and prior approval of GOI.

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Shardul Thacker is a partner at Mulla & Mulla & Craigie Blunt & Caroe.

Mulla & Mulla & Craigie Blunt & Caroe

Mulla House

51, M.G. Road

Fort, Mumbai 400 001

India

Tel: +91 22 2204 4960 / 2262 3191

Fax: +91 22 2204 0246 / 6634 5497

Email: info@mullaandmulla.com

 

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