(MKS.L) have a major presence, riding soaring demand for branded products among the fast-growing urban young population.
But multi-brand retailers such as supermarkets, which face more restrictions on foreign investment, have been less quick to invest. Earlier this week, the local government of Delhi stopped foreign supermarkets from entering.
Despite the world economic crisis, Geneva-based Richemont has had a good run of growth in the last two years, boosted by its expanding retail operation at a time when its wholesale business has seen a more modest rise in sales.
Richemont's proposal will now be examined by the department of industry, and if approved, would then be submitted to India's Foreign Investment Promotion Board for final approval.
New Delhi will not relax sourcing conditions for the luxury brand, even if it finds it difficult to procure 30 percent of merchandise from local suppliers, the official said.
"They might have thought about these conditions before applying. There is no question of relaxing outsourcing conditions," the official said.