Government of India has started considering 100% foreign Direct Investment (FDI) in single brand retail firms. In other words, government of India has giving a though to allow foreign companies to invest in single brand retail to 100% which is currently limited to maximum 51% only.
It is been proposed to the Indian government to allow direct investment by foreign investors in the single brand retail. As of now, foreign companies can invest only upto 51% FDI in retail firms which makes them push to tie up and depend on their Indian franchises.Flickr]
This will not only turn down the dependency on local partners but also increase the profits of the company. This move will the help existing brands to expand across the country and will also attract new brands to enter into the country.
Increase in the demand of luxury goods in the last few years which is expected to grow more in the upcoming years makes it a potential place for top global luxury brands. This approval will directly benefit the existing/new luxury brands and will introduce new lifestyle products to the country.