Clarifying its conditions for foreign direct investment in retailing, the Indian government has ruled that foreign operators must procure at least 30 percent of the goods from small Indian companies that have invested a maximum of US$2 million in plant and equipment. To control any retail operations in India, these foreign operators will also have to invest themselves at least $50 million locally in back-end infrastructures for manufacturing, processing, distribution, design improvement, quality control, packaging, logistics, storage and warehousing, excluding land and store rentals.

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