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FDI in retail

As per FDI circular 1 of 201 published by Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, Government of India FDI up to 51 % under the Government route is allowed in retail trade of “Single Brand” products.


Clause 5.59.3 of FDI circular 1 of 2010 reads as under:

5.39.3 Single Brand product trading: FDI up to 51%, under the Government route is allowed in retail trade of ‘Single Brand’ products. This is, inter alia, aimed at attracting investments in production and marketing, improving the availability of such goods for the consumer, encouraging increased sourcing of goods from India, and enhancing competitiveness of Indian enterprises through access to global designs, technologies and management practices.

(i) FDI up to 51% in retail trade of ‘Single Brand’ products would be subject to the following conditions:

(a) Products to be sold should be of a ‘Single Brand’ only.

(b) Products should be sold under the same brand internationally i.e. products should be sold under the same brand in one or more countries other than India.

(c) ‘Single Brand’ product-retailing would cover only products which are branded during manufacturing.

(ii) Application seeking permission of the Government for FDI in retail trade of ‘Single Brand’ products would be made to the Secretariat for Industrial Assistance (SIA) in the Department of Industrial Policy & Promotion. The application would specifically indicate the product/ product categories which are proposed to be sold under a ‘Single Brand’. Any addition to the product/ product categories to be sold under ‘Single Brand’ would require a fresh approval of the Government.

(iii) Applications would be processed in the Department of Industrial Policy & Promotion, to determine whether the products proposed to be sold satisfy the notified guidelines, before being considered by the FIPB for Government approval.


Thus FDI up to 51% in retail trade of ‘Single Brand’ products is allowed with conditions as mentioned in Para (i) of clause 5.39.3. As per Para (ii) the application for permission has to be made to SIA (Secretariat for Industrial Assistance). The application has to specifically indicate the product/ product categories which are proposed to be sold under a ‘Single Brand’. Any addition to the product/ product categories to be sold under ‘Single Brand’ requires fresh approval of the Government.

 

 

 
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