27 May, 2020
3 Min Read
FDI in single brand retail
Union government has decided to allow 100 per cent Foreign Direct Investment (FDI) in single-brand retail trading through the automatic route. Single-brand retail chain is expected to sell all its products under only one label across its store, example Burger King, KFC, Levis.
If an MNC operates a single-brand retail chain, the product must also be sold under the same brand name globally. The MNC must also source 30 per cent of its purchases for the business from India. Now this rules are slightly relaxed to allow an MNC to set off any local sourcing for its global business, against this 30 per cent quota.
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