<h1>India's FDI Policy in Multi-Brand Retail: 51% Cap for Foreign Investors, Government Approval Required.</h1> The Indian government's policy on Foreign Direct Investment (FDI) in multi-brand retail trading aligns with international investment agreements, focusing on market access and national treatment. Foreign investors can enter the Indian market only after government approval, with a 51% investment cap compared to 100% for domestic investors. The policy is a pre-establishment instrument, not covered by post-establishment agreements like BIPA. While India has pre and post-establishment commitments in CECA/CEPA, multi-brand retail was excluded from these agreements, thus unaffected by the new policy. The policy respects state prerogatives and complies with WTO commitments, allowing states to decide on multi-brand retail stores.