Online Broadband Guide
Online Broadband Guide


Cabinet approves 100% FDI in single-brand retail

Cabinet approves 100% FDI in single-brand retail

A shopper walks out of store at a mall in Mumbai, India, July 10, 2017.

This follows a Cabinet decision to allow 100 per cent FDI in single brand retail under automatic route, while also easing local sourcing norms.

The CPI (M) too criticised the decision.

"They are now actually private sector airlines because the private sector can run airlines far better than government running them".

The government's latest announcement will quicken the FDI process as governmental approval is not needed, said sector specialists and observers.

Until now, SBRT entities were required to source 30% of their purchases from India.

This essentially means that government approval is no longer required for FDI in single brand retail trading.

Incremental sourcing has been defined as the annual increase (in value terms) of the SBRT firm's global sourcing from India for the single brand.

Industry experts welcomed the move.

Once the country's monopoly airline, Air India has slowly lost market share to new low-priced private players in one of the world's fastest-growing airline markets. The Indian retail market is divided into organised market valued at $60 billion which is only 9 percent of the total sector while the unorganised market constitutes the rest 91 percent of the sector, according to IBEF. But because of the complicated approval route for investment proposals, they have been hesitant. "Today's decision will further speed this up", Pankaj Renjhen of JLL India said. But substantial ownership and effective control of Air India must remain with an Indian national, the government said in a statement.

Debt-laden Air India is staying afloat on taxpayers' money.

This relaxation is applicable for the first five years, which will allow global retailers to come in with worldwide merchandise without concerns of loss of quality and brand equity. Overseas investment policy has also been liberalised in case of power exchanges.

In the sector of power exchanges, the government said: "Extant policy provides for 49% FDI under automatic route in Power Exchanges registered under the Central Electricity Regulatory Commission (Power Market) Regulations, 2010". The real estate beneath these projects, however, remains off limits to foreign investors.

As of now, India has just operational power exchanges - Indian Energy Exchange and Power Exchange of India.

Senior Congress leader Anand Sharma said that 100% FDI in single-brand retail was notified during the previous UPA government and the only change made was to allow it through the automatic route.

After complaints from fashion major H&M and furniture giant Ikea on the 30 per cent mandatory local sourcing norms, the government had eased the provision. It has recently abolished the Foreign Investment Promotion Board, the screening committee which was an anathema to foreign investors.

However according to Mishra, there was also an expectation of the Government liberalising the FDI norms for multi-brand retail to enable large worldwide retail chains invest in India and bring latest technologies and retail formats into India, which remains an unfinished agenda presently.

follow

editors' picks

January 13, 2018
Significant Mover of Yesterday: Physicians Realty Trust (DOC)
It is positive, as 38 investors sold RPM shares while 99 reduced holdings. 56 funds opened positions while 167 raised stakes. Alphamark Ltd Liability invested in 8,837 shares. 47,540 were accumulated by Janney Montgomery Scott Limited Liability Corp.

January 12, 2018
'Home and Away' Actress Jess Falkholt Passes Away
Her sister, Annabelle, 21, passed away on December 29 as a result of her injuries and was buried with their parents on Wednesday. Vivian's younger brother, Paul Ponticello, spoke at the funeral service where he thanked people who ran to the family's aid.

January 10, 2018
Smartphones with in-display fingerprint sensor showcased at CES 2018
It will be interesting to see how the new biometric scanning technology will affect the smartphone usage and the industry trends. While rear-mounted fingerprint scanners are all well and good, there are people who just like it on the front of the smartphone.

January 10, 2018
Report Says Huawei Failed to Reach Smartphone Sales Deal With AT&T
However, Huawei will continue on its determined campaign to pierce through the lucrative North American market. In that letter the committees raised concerns about Huawei's plans to launch consumer products in the U.S.

January 10, 2018
Bye! Meghan Markle Deletes All Social Media Accounts
Markle is grateful to everyone who has followed her social media accounts over the years". She recently moved from Toronto, where " Suits " is filmed, to London to live with Harry.

January 09, 2018
Bears name Chiefs assistant Nagy as new coach
One name that has quickly emerged for Kansas City's vacant OC position is Chiefs running backs coach Eric Bieniemy. The Chiefs won the AFC West, only to blow an 18-point halftime lead in a playoff loss to Tennessee on Saturday.

January 08, 2018
Egypt's Salah wins African Footballer of the Year prize
In early 2017, the forward was the central figure for Egypt as they finished runners-up at the Africa Cup of Nations. Another Twitter user posted:"African football is sooo corrupt man Salah is not even African he's Egyptian".

January 07, 2018
India stand firm against disciplined Proteas
Dhawan was on his way back to the pavilion the very next over as he was caught and bowled by Steyn for a quickfire 16. He then proceeded to have Hashim Amla caught behind for three runs, which left the Proteas reeling at 12/3.

January 07, 2018
Four policemen killed in Kashmir bombing
The militants had attacked the 185th battalion camp of the Central Reserve Police Force in Awantipora around 2 am on 31 December. Four policemen killed in an improvised explosive device (IED) blast in Sopore of Jammu and Kashmir's Baramulla district.

January 06, 2018
NFL Ratings Fall at Faster Pace
Fans being upset with player protests during the national anthem may have an impact. "That's a pretty meaningful drop", he said. Injuries were also a factor, as three of the league's most dynamic stars - Aaron Rodgers of the Green Bay Packers, J.J.