The Government of India has issued a notification allowing global multi-brand retailers to open their outlets in India.
The notification issued by the Department of Industrial Policy and Promotion(DIPP)said 51 percent foreign direct investment(FDI)in India's multi-brand retailing will be permitted in all products.
The decision takes immediate effect in 10 states and union territories,which have,so far,agreed to implement the Government of India's decision.
The notification says retail outlets can be set up in other states/union territories,when they agree in future to allow FDI in multi-brand retail trading(MBRT).
Under the policy,the minimum investment cap for a foreign investor is US$100 million,of which,a minimum 50 percent should be invested in back-end infrastructure during the first three years.
The multi-brand outlets can only be set up in cities that have a population of over one million.
The DIPP notification also puts into effect the Cabinet decision to relax the 30 percent local sourcing norm for foreign retailers who invest more than 51 percent for setting up single-brand outlets.
Source:
http://www.fibre2fashion.com/news/apparel-news/newsdetails.aspx?news_id=116095
