January 26, 2012
On January 10, 2012, the Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, Government of India, issued a press note amending the Consolidated Foreign Direct Investment ("FDI") Policy of October 2011 ("Amendment").
The Amendment allows up to 100% FDI in single-brand product retail trading with the prior approval of the Government of India, increased from a previous 51%, subject to the following conditions:
While the motivation of the Amendment is well placed, it is imperative for the Government of India to lend some clarity on the exact scope of the Amendment especially in terms of the mandatory "small industries" sourcing of at least 30% of the value of products sold in India.
Gibson, Dunn & Crutcher lawyers are available to assist in addressing any questions you may have regarding these issues. For further details, please contact the Gibson Dunn lawyer with whom you work or the following lawyers in the firm’s Singapore office:
Jai S. Pathak (+65 6507 3683, email@example.com)
Priya Mehra (+65 6507 3671, firstname.lastname@example.org)
Karthik A. Thiagarajan (+65 6507 3636, email@example.com)
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