India being amongst largest markets of the world, is eyed by all major international companies in the sphere of retail, e-comerce and wholesale trade. India is assessed as having huge population falling in Middle Income Group band with high purchasing power and with majority population being young and with mobile connections in excess of one billion, this sector would remain the hottest destination. There are more concerns on FDI in multi brand retail trade led by brands like Walmart, Tesco etc. due to concerns with respect to protection of local kiryana stores, agriculture sector and village and cottage industry (the sectors which have employed largest number of people in India), and the sector continues to be regulated and restricted for FDI. However, there are comparatively less concerns for single brand retail trading.
FDI in Single Brand product retail trading (SBRT):
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 excess to global designs, technologies and management practices.
|% of Equity/
|Single Brand product retail trading
|Automatic up to 49%
Government route beyond 49%
FDI in SBRT would be subject to the following conditions:
So, FDI with a controlling stake for single brand retail trade is permitted with sourcing conditions from MSMEs and cottage industries for developments and benefits to MSMEs and cottage industries and thus promoting Make in India.
For knowing more about FDI in multi brand retail trade, please read