Clarifying norms for single brand retail trading, Narendra Modi led government today allowed foreign investors to conduct business through more than one joint venture in India.
“A non-resident entity or entities, whether owner of the brand or otherwise, shall be permitted to undertake single brand product retail trading in the country for the specific brand, directly or through a legally tenable agreement with the brand owner for undertaking single brand product retail trading.
“Such non-resident entity or entities can undertake single brand retail trading business through one or more wholly owned subsidiaries or joint ventures,” the DIPP said.
The Department of Industrial Policy and Promotion (DIPP) clarified this as there was a confusion whether the brand owner or non-resident entity/entities can undertake single brand retail trading of the specific brand through more than one company in India.
It has also clarified that the foreign direct investment (FDI) policy on single brand retail trading equally applies to Indian brands seeking foreign investment.