FDI rules in India to include creation of back-end logistics

September 6, 2010 |

Planet Retail 6 Sep 2010

The Indian government plans to allow only those retailers who first invest in back-end supply chain and infrastructure to set up multi-brand retail outlets in the country, India's Financial Express reports. The Indian Department of Industrial Policy and Promotion (DIPP) said that interested players will first have to set up cash & carry outlets, sourcing centres and the entire supply chain before they enter retailing.

An official involved in the discussions said: "The policy will be such that there will be a holistic approach - comprising the value chain from bottom to the top - in allowing FDI in multi-brand retail. We will ensure that retailers who want to enter India have already created jobs here."

The FDI limit in multi-brand retail is expected to be below the 51% cap in single-brand retail to ensure that control remains with Indian investors. Sources close to the discussions are expecting a recommendation of 49%.

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Thu, 2010-09-09 08:52

By violy

India

India is considered as one of the largest economy in the world. The labor force has been ranked as second from the largest in the entire whole world. India is known for its agricultural products such as rice, wheat, oilseed, cotton, jute, tea, sugarcane, and many more. There are also some industrial businesses such as textiles, telecommunications, chemicals, food processing, mining, petroleum, machinery and software. Although the Indian economy has grown steadily over the last two decades; its growth has been uneven when comparing different social groups, economic groups, geographic regions, and rural and urban areas.