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Notwithstanding its inability to open multi-brand retail for foreign
investment, government today notified 100 per cent FDI in single-brand
retail, paving way for global chains like Adidas, Louis Vuitton and
Gucci to have full ownership of their India operations.
"Foreign Direct Investment (FDI), up to 100 per cent , under the government approval route, would be permitted in single brand product retail trading," a press note by the Department of Industrial Policy and Promotion (DIPP) said.
However, in respect of proposals involving FDI beyond 51 per cent, the mandatory sourcing of at least 30 per cent would have to be done from the domestic small and cottage industries which have a maximum investment in plant and machinery of USD 1 million (about Rs 5 crore).
"FDI in single brand has led to emergence of some global majors in Indian market...This will provide stimulus to domestic manufacturing value addition and help in technical...
Source: http://www.financialexpress.com/news/100-fdi-in-single-brand-retail-notified/898114/