Fri, Jul 14
The Government has therefore been opening up this sector to foreign players in baby steps. The latest was allowing per cent Foreign Direct Investment FDI in single-brand retail trading through the automatic route last week. Earlier, foreign players could own up to 49 per cent in a local single-brand retail chain but had to approach the department of industrial policy and promotion DIPP for a go-ahead to acquire the remaining 51 per cent.
Now they can fully own their Indian operations without applying for permission. But the new concessions apply only to single-brand retail chains. FDI in multi-brand retail trading in India is still capped at 51 per cent.
FDI and its impact on the Retail Sector in India Industry Remember the time when going to cafe coffee day was a luxury and now if you don’t walk into office with a . FDI in multi-brand retail trading in India is still capped at 51 per cent. What’s a single-brand retail chain? It is expected to sell all its products under only one label across its stores. Foreign direct investment (FDI) in the retail sector in India is restricted. In , the government eased retail policy for the first time, allowing up to 51 per cent FDI through the single brand retail route.
It is expected to sell all its products under only one label across its stores. A multi-brand retail store is like your typical Big Bazaar which sweeps many brands under one roof. There are a few strings attached, though. If an MNC operates a single-brand retail chain, the product must also be sold under the same brand name globally.
The MNC must also source 30 per cent of its purchases for the business from India. This rule was slightly relaxed last week to allow an MNC to set off any local sourcing for its global business, against this 30 per cent quota. Why is it important?
While foreign investors may salivate at the thought of selling to a 1. Those opposed to FDI worry that opening the door to pound gorillas will draw away consumers from these tiny outlets to giant departmental stores, and squeeze their suppliers too.
The new proposal is a compromise solution which tries to protect such outlets while earning the Government brownie points for liberalising FDI. For one, MNCs can sell both premium and mass-market products in these single-brand stores.
One trip to Starbucks may equal your monthly bill at the Nair tea stall. Why should I care? If you are shopaholic with a yen for Louis Vuitton bags, Ikea furniture or Cartier watches, you may soon see more swanky stores exclusively for such brands.
Single-brand retailers can offer new experiences too. The move may also help home-grown single brand e-tailers like Urban Ladder source more foreign venture capital to bankroll their expansion.
May the best model win. A weekly column that puts the fun into learning Published on.The Narendra Modi govt is considering allowing % FDI in multi-brand retail as long as the products are made in India—in an attempt to promote Make In India with job creation at its core.
FDI and its impact on the Retail Sector in India Industry Remember the time when going to cafe coffee day was a luxury and now if you don’t walk into office with a . India’s policy on foreign direct investment permits such fund flows into the country under either the automatic or approval routes.
Under the latter route prior approval from the Government of India is required for any foreign investment in an Indian company involved in a retail business.
Sep 21, · FDI in retail: Find Latest Stories, Special Reports, News & Pictures on FDI in retail. Read expert opinions, top news, insights and trends on The Economic Times. India likely to witness more M&As in the next decade. Retail to etail, festive sales .
Yes, "Foreign Direct Investment (FDI) in retail sector is good for India" because India is a developing country and there is need of these types of process as these . Foreign Direct Investment (FDI) in India has been on the rise in the past few years especially in the retail, e-commerce, hospitality, and travel space.
This growth in the retail and e-commerce business has gradually attracted attention from leading international.