Press Information Bureau

Government of India

Ministry of Commerce & Industry

10-January-2012 18:34 IST

100 Per Cent FDI in Single Brand Retail Notified

Department of Industrial Policy and Promotion Ministry of Commerce and Industry notified the decision to allow 100 per cent FDI in Single brand retail today via Press Note No.1 (2012 Series). The Union Minister for Commerce Industry and Textiles said “Cabinet took the conscious decision to liberalise policy for FDI in single brand retail. FDI in single brand has led to emergence of some global majors in Indian market. We have now allowed Foreign Investment up to 100 percent with the stipulation that in respect of proposals involving FDI beyond 51 per cent there will be mandatory sourcing of at least 30 per cent of the total value of the products sold would have to be done from Indian ‘small industries/village and cottage industries, artisans and craftsmen, This step will provide stimulus to domestic manufacturing value addition and help in technical upgradation of our local small industry.”

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The Press Note No.1 (2012 Series) of DIPP can be seen here

DS

Single brand retail: 100% FDI allowed, with >51% investment requiring 30% local sourcing from small industry. 100 percent FDI is permitted in single brand product retail trading under the government approval route, conditioned on single brand, branded manufacturing, international sale of the same brand, foreign investor brand ownership, and, where FDI exceeds 51%, mandatory sourcing of at least 30% of product value from Indian small industries (plant & machinery investment US$1.00 million), with company self certification and statutory auditor verification; applications must specify product categories and obtain fresh approval for additions.