Single brand FDI to be notified 'soon': Govt

New Delhi: The government may soon notify 100 percent foreign direct investment in single-brand retail, paving the way for global chains like Adidas, Nike, Louis Vuitton, Hermes and Gucci to have full ownership of their India operations.

"Soon", said PK Chaudhery, secretary in the Department of Industrial Policy and Promotion (DIPP), when asked about the notification of 100 percent FDI in single-brand retail.

[caption id="attachment_174574" align="alignleft" width="380" caption="Singer Fergie of the Black Eyed Peas presents a creation by French fashion house Louis Vuitton. Reuters"][/caption]

The decision to increase FDI in single brand retail was taken by the Cabinet on 24 November along with opening the gates for overseas investment in the multi-brand retail. However, the government was forced to put on hold FDI in multi-brand retail by several political parties,including UPA ally Trinamool Congress.

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Presently, for single brand retailers,51 percent FDI is permitted. Removal of investment cap would help global fashion brands especially from Italy and France to strengthen their interest in the growing Indian market.

Most of the big names have already set up their operations in the country with joint ventures with Indian partners. The new policy would allow them to buy out the domestic partners.

PTI