Centre may ease FDI retail norms

New Delhi: The government is considering allowing 100 per cent FDI through automatic route in single brand retail to attract a larger number of global players in the sector.

According to sources, there is a proposal to allow 100 per cent Foreign Direct Investment in single brand retail sector "through automatic route" with certain conditions.

Currently, FDI up to 49 per cent is permitted under the automatic route but beyond that limit, government's nod is required. Foreign investment is allowed subject to certain conditions, which require products to be of a 'single brand' only and to be sold under the same brand globally.

Furthermore, in respect of proposals involving Foreign Direct Investment beyond 51 per cent, it is mandatory to source 30 per cent of the value of goods purchased from India, preferably MSMEs.

The issue to ease the Foreign Direct Investment policy in the sector is under discussion between the ministries of finance and commerce and industry.