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Govt notifies norms for FDI in retail
By agencies
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Wednesday, 15 February 2006, 20:30 IST
NEW DELHI: The center has issued guidelines for Foreign Direct Investment in retail that permits multinational companies to offer multiple products under a single brand with prior government approval.
The government has also issued notification liberalizing FDI regulations in various other sectors through the automatic route.
The notification pertaining to retail sector states that FDI up to 51 percent in retail trade of single brand products would cover only those that are sold under the same brand internationally and are branded during manufacturing.
The guidelines said that the application for retail FDI would specifically indicate "the product or product categories which are proposed to be sold under a single brand." "Any addition to the product or product categories to be sold under single brand would require a fresh approval of the Government," the Department of Industrial Policy and Promotion said in the notification.
The notification, through Press Note 3 of 2006, which comes into effect immediately, says that FDI in retail would be allowed only with prior government approval.
A company would have to file an application to the Secretariat of Industrial Assistance under the Department of Industrial Policy and Promotion. The Foreign Investment Promotion Board would later consider the application.
The move is "aimed at attracting investments in production and marketing, improving availability of such goods for the consumer, encouraging increased sourcing of goods from India, and enhancing competitiveness of Indian enterprises through access to global designs, technologies and management practices," it said.