Second Wave of Reforms
The last quarter saw a very active Government taking all
possible steps to boost investor confidence in the Indian market.
Undeterred by growing negative publicity and corruption scandals,
the Manmohan Singh Government took a hard stand on some critical
and long pending policy reforms, which are being seen as a huge
milestone towards revival of the Indian economy.
The Government of India ("GOI") has recently
introduced certain robust economic reforms relating to foreign
direct investments ("FDI"). Some significant reforms and
the implications thereof are set out below.
1. Multi-brand product retail trading
The GOI has now approved FDI in multi-brand retail trading, up
to 51% through government approval route. The Department of
Industrial Policy and Promotion ("DIPP") has vide Press
Note No. 5 of 2012, notified this amendment to the consolidated FDI
policy dated 10 April 2012 ("Consolidated FDI Policy").
FDI in multi-brand retail trade is
