FDI in Single Brand Retail Sector India

Till 2011, foreign direct investment in the single-brand retail sector of India, was limited to 51%. Now, as per the recent development and declaration of the Government of India (made in September 2012), this limit is finally extended up to 100% ownership by foreign retailers and investors. Thus, great and elusive opportunity for entering into vast and abundant retail sector of India, is now generously offered to all foreign companies, retailers, and investors of the world over. To globally prominent and popular single-brand retailers like IKEA, Apple, Nike, and several others, this declaration of Indian Government is certainly a magnificent boon. Exclusive and refined information about the retail sector of India is being provided below, as service to our Indian and global visitors.

The retail market of India is one of the largest and most progressive retail markets in the whole world, with a high growth rate equaling to 15% every year. Currently, the retail industry of India (including both single-brand and multi-brand) is worth US $450 billion, and contribute about 15% to the national GDP of India every year. Almost all sectors of Indian economy have been developing and progressing fast constantly since a decade, to expand and enrich the retail industry also, besides all other sectors. The national GDP growth rate of 8% has been boosting the financial status of the majority of Indian population, to enhance their purchasing power. Moreover, the organized retail sector of India is inadequately developed, and thus, has ample potential for tremendous growth, as in many well-developed nations of the world.

After the recent FDI liberalization policies in the retail sector of India, the organized retail sector of India is expected to grow with a rate of over 10% every year. The foreign direct investment in the single-brand and multi-brand retail sectors, is hoped to reach the level of US $ 2.5-3 billion, in the next five years. However, the foreign single-brand retailers will have to procure at least 30% of their products and goods from the local or domestic industries and companies, to do business in India. Providing well-rounded, perfect, and swift legal help and services for foreign direct investment in India in its diverse sectors, we are well-equipped to offer legal services for fdi in the retail sector of India, under both the categories of single-brand retail and multi-brand retail. Here, it may be noted that in the multi-brand retail sector, the permitted level of FDI is up to 51% only, according to the latest governmental declaration.

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