India Announces 100% FDI in Single Brand Retail
January 22nd, 2012January 21st, 2012—Mumbai, India—Last week, Government of India finally announced the much awaited 100 per cent FDI in single brand retail in the country. After the debacle of trying to introduce foreign investment in multi-brand retail, many analysts were skeptical on whether the government would be able to take decisions with respect to FDI in retail in the near future. However, last week, the government gave the go ahead for introducing 100% FDI in single brand retail that is sure to transform the retail industry in India.
As per IndiaCompanySetup.com (www.indiacompanysetup.com), some of the biggest multinational companies from around the world were waiting for India to open up its retail market completely. Although it does not seem likely that the government will open up FDI in multi-brand retail any time soon, at least brands like Starbucks and Ikea can now enter the Indian market with full ownership of their Indian ventures. So far, foreign companies were allowed to own 51 per cent shareholding in single brand retail companies in India and needed a local partner to enter the Indian market. This was not acceptable to many of the topmost companies in the world and with the announcement of 100 per cent FDI; it won’t take long before these companies make an entry into one of the fastest growing retail markets globally.
According to IndiaCompanySetup.com, the Indian market is expected to be one of the most lucrative retail markets and is just too huge to ignore for the big names in single brand retail. Many of them were already exploring opportunities on the best way to enter the Indian market and now with 100 per cent FDI allowed, all obstacles have been removed for these companies. Indian economy is expected to grow at about 7 per cent per annum despite the fears of a slowdown in India due to a worsening global economy.
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