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ARTICLE · 15 JULY 2015

DIPP Clarifications On Single Brand Retail - Branding It Right!

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Over the years, the Indian retail trading business has been perceived as a lucrative investment destination by global investors.

IndiaGovernment, Public Sector
Atul Pandey
Atul Pandey
Shweta Dwivedi
Shweta Dwivedi
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Over the years, the Indian retail trading business has been perceived as a lucrative investment destination by global investors. Most of the international brands have either entered Indian markets or are looking at setting up shops in India soon. The recent policy changes introduced by the current BJP-led central government have certainly given a boost to global investors' sentiment towards investing in India.

Background

In 2006, the Government of India (Government) had allowed 51% foreign direct investment (FDI) in single brand retail trading (SBRT) under the government approval route (i.e. with the prior approval of the Department of Industrial Policy & Promotion (DIPP) / Foreign Investment Promotion Board (FIPB)). The SBRT sector was further liberalised in (i) January 2012, when the Government permitted 100% FDI in SBRT under the approval route; and (ii) August 2013, when FDI in SBRT was allowed upto 49% under the automatic route (i.e. without any prior approval

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