After considerable debate, the Department of Industrial Policy and Promotion (DIPP) has agreed to permit 100% foreign direct investment (FDI) in single-brand retail. Investors will require prior approval from the Secretariat for Industrial Assistance and the Foreign Investment Promotion Board for these investments.
Before the cap was lifted through a press release on 1 January, up to 51% FDI was allowed in single-brand retail with government approval. Further, FDI in retail was subject to the following conditions:
- Products intended for sale should be of a single brand only
- Products intended for sale in India should be sold under the same brand internationally
- Single-brand product retail only covers products which are branded during manufacturing
- The foreign investor should own the brand
You must be a
to read this content, please
The legislative and regulatory update is compiled by Nishith Desai Associates, a Mumbai-based law firm. The authors can be contacted at email@example.com. Readers should not act on the basis of this information without seeking professional legal advice.