Single Brand Retail Trading (SBRT) sector has received total FDI equity of US$ 1,048.14 million from April, 2006 to March, 2018. FDI policy on SBRT has been in operation since 2006. From 2006 till 29.03.2018, 112 brands have obtained the approval of Government in this regard. After 29.03.2018, FDI upto 100% under automatic route has been allowed in SBRT for which no prior approval is required.

A Committee under the chairmanship of Secretary, Department of Industrial Policy and Promotion, with representatives from NITI Aayog, concerned Administrative Ministries and independent technical experts on the subject, examine the claim of applicants on the issue of the products being in the nature of state-of-art and cutting-edge technology, where local sourcing is not possible and gives recommendations for such relaxation. However, no FDI application has been granted waiver from local sourcing norms on the basis of state-of-art or cutting-edge technology till now.

Foreign Investment in Single Brand product retail trading is 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.

This information was given by the Minister of State of Commerce and Industry, C. R. Chaudhary, in a written reply in the Rajya Sabha today.

FDI in single brand retail: up to full automatic route allowed, with committee review for local sourcing exemptions. Single Brand Retail Trading policy has permitted FDI since 2006 and, after 29.03.2018, allows FDI up to 100% under the automatic route without prior approval. A designated government committee assesses requests to relax local sourcing norms on state-of-the-art technology grounds and has not recommended any waiver to date; the policy aims to attract investment, boost product availability, increase sourcing from India and enhance competitiveness through global designs and technologies.