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Bloomberg
India will witness about 10 foreign single-brand retailers starting operations after PM Narendra Modi removed the need for a federal approval, a senior minister said.
The companies which have sought government permission to set up single-brand establishments include Fast Retailing Co., operator of Japanese casual-wear brand Uniqlo. It had submitted an application in November in 2017.
Tesla Inc. is also in talks with the government to enter India through the single-brand retail route, The Times of India reported in 2017.
“There are around 10 applications under single-brand retail trading and these will be positively impacted once the amendments in the FDI policy are notified,†Suresh Prabhu, Commerce and Industry Minister told Bloomberg News, without giving details.
Apart from lifting the need for an approval, the rule mandating 30 percent local sourcing has also been relaxed for the first five years for companies investing under single-brand retail trading.
Relaxed rules have given a push to foreign direct investment inflows into India, which rose 17 percent in April-September to $21 billion from a year ago, according to data from the commerce ministry.