FDI in Multi Brand Retail Sector India

The recently declared policy of the Government of India regarding foreign direct investment in the Multi- brand Retail sector of India, is like a welcome and great boon to all foreign retailers and investors. The Government of India has now finally decided to allow FDI up to 51% in the Multi-brand Retail sector of India. For a long time, the vast $450 billion retail market of India has been striking and alluring to foreign investors and retailers of the world over, for making highly profitable and secure foreign direct investment. Now, they are fully enabled and well-facilitated to perform such lucrative investments in huge and constantly growing retail sector of India. Some of the most outstanding features of the retail sector of India are described below, as service to all foreign retailers, companies, and investors of diverse sectors of commerce and industry. Ours prestigious and globally reputed legal organization is well-equipped to provide prompt and impeccable services for most secure and productive foreign direct investment in Indian retail sector. Ours well-experience law firm has been offering refined and swift legal services to people and entities in almost all economic sectors in India and countries worldwide.

Today, the retail industry of India is estimated to be worth US $ 450 billion, and by dint of this economic value, it is regarded as one of the top five largest retail markets in the whole world. The constantly growing economy of India with an average rate of 8% and India's 1.2 billion people, together make the retail industry of India highly growth-oriented and immensely profitable in present and future times. As per an estimate by mellow and expert economists, the retail market of India can reach the level of around $ 650 billion by the year 2015. The latest decision of Indian Government is to boost the growth in retail, further more. According to percipient and discerning economists, the organized retail sector of India has potential to grow at the rate of over 15% every year, especially after this visionary decision of Indian Government.

Currently contributing to about 15% of the national GDP of India, the Indian retail sector is expected to entice huge FDI ranging from $2.5 - 3 billion in the next five year, after this liberalizing and visionary decision of Indian Government. Foreign investors, retailers, and companies of the world over, including the Wal-Mart of USA, Metro of Germany, Carrefour of France, Tesco of UK, etc., are now fully free and well-facilitated to make their majority stake investments in the multi-brand retail sector of India, for bright and promising future. The significant recommendations of the latest FDI liberalization policies of India, in multi-brand retail sector, are the following:
  • The minimum level of FDI in multi-brand retail sector will be worth $ 100 million
  • Supermarkets are allowed in only those cities of India whose population is at least one million
  • At least 50% of the total investment will be made on the Back-end Infrastructure
  • And, at least 30% of their goods and products will be procured from the local companies and industries.

Query Form

Legal Query Form
1 + 2
Copyright © 2016 Global Jurix.