Hit by criticism for policies that obstruct investment decisions, the government is on the way to ease FDI norms for single-brand retail sector that includes those in home furniture, foot wear etc. The condition to source 30% of the requirements from local small firms and artisans is to go.
Last year, the government allowed the multi-brand retail businesses under liberalized norms. However, it opened up new opportunities for single-brand retail business.
Globally single-brand businesses adopt cent per cent ownership model – which is not allowed in India. The proposed norm is likely to encourage such enterprises to invest in India.
Source: Hindustan Times