the world and stability coupled with consistent growth of such a large con- tributor to the global economy is not an easy task. The Indian government has been consistent in its support for market development through trade liberalization, financial liberalization, taxation reforms and opening up to foreign investments. India's twin growth engines of economic growth and demographic profile set it apart from other nations and present a compelling business case for global retailers looking to enter the Indian market. In its endeavors to encourage foreign investments in India, the Depart- ment of Industrial Policy and Promotion ("DIPP") of the Ministry of Commerce and Industry see Press Note No. 1 (2012 Series) dated January 10, 2012 ("PN brand product retail trading under the Government route ( i.e. with the prior approval of the Secretariat for Industrial Assistance and the Foreign Investment Promotion Board). Prior to PN 1, up to 51 percent was allowed in the single brand retail sector. But with the recent 100 percent limit relaxation, entry in the Indian markets has become a very lucrative opportunity for global as well as domestic market players. The retail industry in India is of late often being hailed as one of the sunrise sectors in the economy. By relaxing the FDI laws relating to single brand retailing, the Indian government has definitely created a positive step forward, paving the way for foreign to move into India without having to join with an India partner. product retail trading was allowed up to 51 percent under the government route. Further, prior to PN 1, FDI in single brand product retail trading under the FDI policy was subject to the following conditions: `Single Brand' only. same brand internationally, i.e. prod- ucts should be sold under the same brand in one or more countries other than India. would cover only products which are branded during manufacturing. owner of the brand. infusion in single brand product retail trading under the government route, has Relaxation in Foreign Direct Investment Norms in the areas of corporate commercial, corporate transactional and advisory, banking and the financial sector. 10, Thakur Niwas, Level 2 173, Jamshedji Tata Road Mumbai, 400020 India + 91 22 22818380 Phone + 91 22 22865040 Fax shweta.saxena@advaniandco.com www.advaniandco.com 10, Thakur Niwas, Level 2 173, Jamshedji Tata Road Mumbai, 400020 India + 91 22 22818380 Phone + 91 22 22865040 Fax aradhana.prabhakar@advaniandco.com www.advaniandco.com in the areas of arbitration international and domestic, corporate commercial, corporate advisory, real-estate advisory and regulatory. |