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ARTICLE · 14 AUGUST 2013

Additional Foreign Direct Investment Reforms In Retail

Nishith Desai Associates
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In September last year, the Government of India liberalized the foreign direct investment policy relating to retail trading with a view to promote foreign investment.

IndiaInternational Law
Smitha Prasad
Smitha Prasad
Ruchi Biyani
Ruchi Biyani
Vivek Kathpalia
Vivek Kathpalia
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In September last year, the Government of India liberalized the foreign direct investment ("FDI") policy relating to retail trading with a view to promote foreign investment. Despite reforms introduced by the Government, the retail trading sector was unable to attract large international retailers given the ambiguity and stringent conditions attached to such investments. This forced the Government to provide clarifications1 or reforms2 in order to ease the entry of foreign investors into the Indian retail markets.

Accordingly, the Government of India has now announced the relaxation of certain conditions that were applicable to FDI in single brand product retail trading ("SBPRT") and multi brand retail trading ("MBRT").

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