FDI
in Retail Sector in India
The new stand adopted by Indian government regarding foreign
direct investment (FDI) policies has encouraged the domestic
as well as foreign investors in retail sector
to invest in India. Trading
is allowed under automatic route with FDI up to 51% provided it
is primarily limited to export activities, and the undertaking is
an export house/trading house/super trading house/star trading house.
However, under the FIPB route 100% FDI is allowed in case of trading
companies for the following activities:
- bulk imports with ex-port/ex-bonded warehouse sales
- exports;
- carry wholesale trading and cash;
- other import of goods or services provided at least 75% of it
is for procurement and sale of goods and services among the companies
of the same group and it should not for third party use or further
transfer/distribution/sales.
Also See: Retail
Sector in India || Most
competitive spot in modern retailing
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