Dear Comrades,
NEW DELHI: The central government is all set to announce 100 percent Foreign
Direct Investment (FDI) in single-brand
retail trading. The announcement will be made later today.
Sources said that the government was to announce the guidelines for single-brand retail trading later on Tuesday. The norms were ready for permitting 100% FDI in the segment.
At present the government permits 51% FDI in the sector. The move is expected to boost the prospects of global players such as Ikea to set up a wholly-owned venture in India to operate a chain of stores.
Companies that hold 100% stake in Indian ventures will, however, need to follow additional norms such as sourcing at least 30% of the products from micro and small enterprises.
The cabinet had approved the plan in late November but had put the notification on hold following the uproar over allowing foreign chains to open multi-brand
Sources said that the government was to announce the guidelines for single-brand retail trading later on Tuesday. The norms were ready for permitting 100% FDI in the segment.
At present the government permits 51% FDI in the sector. The move is expected to boost the prospects of global players such as Ikea to set up a wholly-owned venture in India to operate a chain of stores.
Companies that hold 100% stake in Indian ventures will, however, need to follow additional norms such as sourcing at least 30% of the products from micro and small enterprises.
The cabinet had approved the plan in late November but had put the notification on hold following the uproar over allowing foreign chains to open multi-brand
