Despite India being branded as the hottest retail destination globally, the last two years have seen only 44 retail applications with the Foreign Investment Promotion Board (FIPB), while this year there have been six applications till March.
The majority of brands who filed an application with FIPB for approval to begin single brand retail trade in the country have been in apparel and lifestyle segment, with a few big names, such as Armani, Cartier and Gucci.
Contrary to the popular belief, since the government?s approval to allow up-to 51% FDI in single brand retail in January 2006, the country?s hasn?t seen foreign brands flooding the Indian retail bazaar. Industry analysts say that most brands aren?t very comfortable entering the market with Indian partners and would rather wait for the government to completely open up the single brand segment Popular brands like Zara and GAP were initially scouting for an Indian partner but later decided to wait until the further relaxation of FDI norms.