Single brand retail - Foreign direct investment (FDI) liberalisation in India

Tax Insights ()

A policy announcement was made in late 2011 in reference to liberalising both single brand and multi-brand retail in India. While there has been resistance to allowing foreign multi brand retailers in India, on 10 January 2012 the Government decided to allow 100% foreign ownership for single brand retail, albeit with some conditions. The above policy change has been undertaken with the objective of :

  • attracting investment in production and marketing,
  • improving the availability of goods for the consumer,
  • increased sourcing of goods from India, and
  • enhancing competitiveness of Indian enterprises through access to global designs, technologies and management practices.