Tweet
Single brand FDI to be notified soon, says Govt
The Government may soon notify 100 per cent foreign direct investment in single-brand retail, paving way for global chains like Adidas, Nike, Louis Vuitton, Hermes and Gucci to have full ownership of their India operations.
"Soon", said Secretary in the Department of Industrial Policy and Promotion (DIPP) P K Chaudhery, when asked today about the notification of 100 per cent FDI in single-brand retail.
The decision to increase FDI in single brand retail was taken by the Cabinet on November 24 along with opening the gates for overseas investment in the multi-brand retail.
However, the Government was forced to put on hold FDI in multi-brand retail by several political parties,including UPA ally Trinamool Congress.
Presently, for single brand retailers,51 per cent FDI is permitted.
Removal of investment cap would help global fashion brands especially from 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 with joint ventures with Indian partners. The new policy would allow them to buy out the domestic partners.
Meanwhile, shares of retail companies rallied on the bourses on hopes that the Government may soon notify 100 per cent FDI in single-brand retail business.
Kishore Biyani-led Future group's Pantaloon Retail (India) surged 6.60 per cent to settle at Rs 141.40, while Provogue (India) closed higher by 9.31 per cent at Rs 22.30.
Koutons Retail gained 6.01 per cent, Shopper's Stop ended 5.81 per cent higher and Vishal Retail rose by 4.96 per cent.
The rally in these counters was in sharp contrast with the sluggish broader market trend.
The Government may soon notify 100 per cent foreign direct investment in single-brand retail, paving way for global chains like Adidas, Nike, Louis Vuitton, Hermes and Gucci to have full ownership of their India operations.
"Soon", said Secretary in the Department of Industrial Policy and Promotion (DIPP) P K Chaudhery, when asked today about the notification of 100 per cent FDI in single-brand retail.
The decision to increase FDI in single brand retail was taken by the Cabinet on November 24 along with opening the gates for overseas investment in the multi-brand retail.
However, the Government was forced to put on hold FDI in multi-brand retail by several political parties,including UPA ally Trinamool Congress.
Presently, for single brand retailers,51 per cent FDI is permitted.
Removal of investment cap would help global fashion brands especially from 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 with joint ventures with Indian partners. The new policy would allow them to buy out the domestic partners.
Meanwhile, shares of retail companies rallied on the bourses on hopes that the Government may soon notify 100 per cent FDI in single-brand retail business.
Kishore Biyani-led Future group's Pantaloon Retail (India) surged 6.60 per cent to settle at Rs 141.40, while Provogue (India) closed higher by 9.31 per cent at Rs 22.30.
Koutons Retail gained 6.01 per cent, Shopper's Stop ended 5.81 per cent higher and Vishal Retail rose by 4.96 per cent.
The rally in these counters was in sharp contrast with the sluggish broader market trend.
