Major changes have been announced in the Foreign Direct Investment (FDI) norms by the Union Cabinet. The announcement was also made that the global single-brand retailers without the necessary permissions can operate in India with having beyond 49 percent in FDI.
This amendment in the FDI norms has put the tech giant Apple to open its own branded stores in India which was earlier not possible due to permissions required from government beyond 49 percent FDI.
The relaxations in the regulations and the tax system have made it easier for foreign companies to establish and operate their work in India and as a result of these changes the global brands had to partner with Indian companies and local retailers. A record foreign investment amounting to $60 billion was brought in the March 2017 fiscal year.
The flow of FDI in India has increased over the years as in the year 2013-14 the total flow of FDI in India was $36.05 billion whereas in the year 2014-15 the inflow of FDI was $45.15 billion. In the year 2016-17 India received the inflow in FDI of $60.08 billion as against the inflow of $55.46 billion in the year 2015-16.
The reports have claimed that the retail market is at booming pace and is expected to be as big as $1 trillion by 2020. The report also lay down that the presently the organized retailers account for 8 percent of the market thus, has the scope of tremendous growth for established global brands.
However, the current policy of government is restricted to the single brand retailers only and thus not contain any policy for retailers dealing with multiple brands. As per the reports, it has been suggested that the Walmart is trying to open stores in India.
Follow MyAdvo for daily legal news and top legal updates!
Image Source.
