Multi Brand Retail And Other Big Ticket FDI Reforms On Track

The Government of India ("GoI") on September 14, 2012 has finally decided to permit Foreign Direct Investment ("FDI") in multi brand retail, a decision much awaited by the industry players and foreign investors. The decision to permit 51% FDI in multi brand retail will clear the way for a number of multi brand retailers to open stores in India. However, subject to final release of the notification for amending the FDI Policy of India, the permission to bring in FDI in multi brand retail is reportedly expected to come with certain conditions, which would, inter alia, include:

• FDI in multi brand retail shall be under prior FIPB approval route;
• Foreign investor should make a minimum investment of $100 million, 50% of which should be invested in the 'back-end infrastructure';