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India attracts $259 million FDI in single brand-retail

24 Dec 2014 Evaluate

Even as uncertainty looms around FDI in Multi-brand issue, India has received $259 million Foreign Direct Investment (FDI) in the single brand-retail sector since April 2010. During April-September 2014, the country received $167.52 million FDI in single-brand retail sector. A total FDI of $11.30 million was received in the last fiscal.

It was back in January 2012, Government permited 100% foreign direct investment (FDI) in single brand retail. While the previous UPA government had allowed up to 51 per cent FDI in multi-brand retail, no foreign retailer apart from Tesco had approached the government for permission to set up stores to sell multiple brands under one roof on account of present government’s reluctance towards this issue. Recently too, Commerce and Industry Minister Nirmala Sitharaman in August 2014, highlighted that NDA government would not entertain foreign direct investment in multi-brand retail.

Meanwhile, in what could be a potential development for the single brand retail sector, government has been examining six proposals for foreign direct investment (FDI) in the sector for approval. Also, notably, the government has not initiated any move to scrap the policy of allowing FDI in multi-brand retail approved by the previous UPA government and if reports are to believed the government would leave the implementation of this policy on states.

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