The government may soon notify 100% foreign direct investment in single-brand retail, paving way for global chains such as Adidas, Nike, Louis Vuitton, Hermes and Gucci to have full ownership of their India operations.
"Soon", said Secretary in the Department of Industrial Policy and Promotion (DIPP) P K Chaudhery, when asked today about the notification of 100% FDI in single-brand retail.
The decision to increase FDI in single brand retail was taken by the Cabinet on November 24 along with opening the gates for overseas investment in the multi-brand retail.
However, the government was forced to put on hold FDI in multi-brand retail by several political parties,including UPA ally Trinamool Congress.
At present, for single brand retailers, 51% FDI is permitted.
Removal of the investment cap would help global fashion brands especially from Italy and France to strengthen their interest in the growing Indian market.
Several big names have already set up their operations in the country with joint ventures with Indian partners. The new policy would allow them to buy out the domestic partners.
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