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Updated: January 6, 2012 23:55 IST

100 % FDI in single-brand retail to be notified soon

Special Correspondent
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File photo shows shows a customer at a retail shop in Kolkata. The government may soon notify 100 per cent foreign direct investment in single-brand retail, Secretary in the Department of Industrial Policy and Promotion P.K. Chaudhery said on Friday.
AP File photo shows shows a customer at a retail shop in Kolkata. The government may soon notify 100 per cent foreign direct investment in single-brand retail, Secretary in the Department of Industrial Policy and Promotion P.K. Chaudhery said on Friday.

The Central Government on Friday indicated that it would soon notify the 100 per cent foreign direct investment (FDI) in single-brand retail cleared by the Union Cabinet on November 24, 2011, paving the way for global chains such as Adidas, Nike, Louis Vuitton, Hermes and Gucci to have full ownership of their India operations.

Talking to reporters at a function organised by the Cement Manufacturers' Association here, Department of Industrial Policy and Promotion (DIPP) Secretary P. K. Chaudhary, in reply to a question on when the single brand FDI would be notified, said it would be done soon.

Removal of investment cap would help global fashion brands especially from the U.S., Italy and France to strengthen their interest in the growing Indian market.

Most of the big names have already set up their operations in the country in joint venture with Indian partners.

The new policy would allow them to buy out the domestic partners.

Consensus

On FDI in multi-brand retail, Mr. Chaudhary said the government would reach out to domestic retailers by holding consultations later this month and evolve a consensus.

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Thanks for contributing. It's helped me to understand the issues.

from:  Jase
Posted on: Jan 15, 2012 at 19:53 IST

No commercial entity is without intent to reap high profits. Hence allowing 100% FDI has no basis for the good of general public. It is all political and bureaucratic exercise.

from:  ramesh agarwal
Posted on: Jan 8, 2012 at 05:22 IST

FDI in retail is urgently needed when investment is declining, rupee is depreciating, inflation is sky high & GDP growth is slowing. FDI in retail will benefit India in many ways: 1)introduce modern logistics such as efficient supply chain & cold storage that will cut down the estimated 40% farm produce wastage helping to tame inflation & putting more money in farmer's pocket, 2)reduce middlemen who pocket most of the profit today thus letting farmers get better price & reduce cost for the consumers, 3)create jobs in retail without requiring high education level such as in IT, 4)help suppliers & farmers be more efficient as foreign retailers work with their vendors to improve quality & yield, 5)better quality products since organized foreign retailers have to observe quality control for fear of bad publicity, 6)huge tax revenue for the govt as organized retail will collect sales tax, 7)increase exports as foreign retailers source from their Indian suppliers for their non-Indian stores.

from:  Jitendra Dutta
Posted on: Jan 8, 2012 at 03:18 IST
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