100 per cent FDI in single brand retail notified


Department of Industrial Policy and Promotion, Ministry of Commerce and Industry has notified the decision to allow 100 per cent FDI in single brand retail. This FDI in single brand product retail trading will have products of a ‘Single Brand’ only, sold under the same brand, internationally. ‘Single Brand’ product retail trading would cover only products which are branded during manufacturing and the foreign investor should be the owner of the brand.

In respect of proposals involving FDI beyond 51 per cent, mandatory sourcing of at least 30 per cent of the value of products sold would have to be done from Indian ‘small industries/village and cottage industries, artisans and craftsmen’.’Small industries’ would be defined as industries which will have a total investment in plant and machinery not exceeding US$ 1 million. This valuation refers to the value at the time of installation, without providing for depreciation.

Further, if at any point in time, this valuation is exceeded, the industry shall not qualify as a ‘small industry’ for this purpose. The compliance of this condition will be ensured through self certification by the company, to be subsequently checked, by statutory auditors, from the duly certified accounts, which the company will be required to maintain. The said policy is expected to bring greater FDI in retail sector, including in electronics.



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