Overseas companies can now set up their 100% subsidiaries in India at a much faster pace than earlier, analysts and industry leaders said. However, it is unlikely foreign players already present in single-brand retail through joint ventures will ditch their domestic partners. Industry veterans said overseas players generally prefer having a domestic partner as it helps them better handle the market, but they don’t like such conditions to be placed on them. Also, the automatic route adds to ease of doing business. So while existing JVs may not see much change, newer companies may be more interested now to enter this space.
Sreedhar Prasad, partner, consumer markets, KPMG India, said: “Large global players would seriously consider entering or accelerating their India plans. We will see more fashion, beauty and personal care, baby product brands coming to India as well as existing brands strengthening their position.”