Industry Reports

Foreign Direct Investment in India’s Single and Multi-Brand Retail

New opportunities and developments lie in store for foreign retailers

By Chris Devonshire-Ellis and Ankit Shrivastava, Dezan Shira & Associates

Feb. 2 – As India has liberalized its single brand retail industry to permit 100 percent foreign investment, we take a look at the regulatory issues and legal structures pertinent to establishing operations in this new dynamic market. That India should be well on the radar for foreign retailers was recently supported by A.T. Kearney, whose 2011 Global Retail Development Index ranks the nation as fourth globally.

India’s retail industry is estimated to be worth approximately US$411.28 billion and is still growing, expected to reach US$804.06 billion in 2015. As part of the economic liberalization process set in place by the Industrial Policy of 1991, the Indian government has opened the retail sector to FDI slowly through a series of steps: Continue reading →

Posted in Business, FDI and Foreign Trade, Featured, Legal and Regulatory, Markets, Retail | Tagged Adidas, Carrefour, India Cold Storage, India Consumers, India FDI, India Multi-brand Retail, India Retail, India Single-brand Retail, India Supply Chains, Nike, Walmart | Leave a comment

India Allows 100% FDI in Single Brand Retail

Jan. 11 – The Indian government on Tuesday agreed to allow 100 percent foreign ownership in single brand retail stores, paving the way for international businesses such as Starbucks, Ikea and Adidas to operate independently in the country without having to involve local partners. Foreign single brand retailers were previously limited to 51 percent ownership.

Besides the entrance of new companies into the Indian market, the decision is also likely to result in several existing foreign players operating under tie-ups with Indian companies to convert their existing ventures into wholly-owned subsidiaries. Continue reading →

Posted in Business, FDI and Foreign Trade, Featured, Legal and Regulatory, Regulatory Update, Retail | Tagged India Multi-brand Retail, India Retail, India Single-brand Retail | Leave a comment

India to Loosen Restrictions on FDI into Broadcasting Services

Dec. 22 – The Government of India is planning to propose a hike in the maximum foreign direct investment (FDI) capital allowed in broadcasting services - such as direct-to-home (DTH) and cable TV – to a uniform portion of 74 percent.

The Finance Ministry has given its consent to a draft cabinet note which outlines the changes circulated by the Industry Ministry. In addition to DTH and cable TV, the initiative also aims to set FDI capital limit at 74 percent for mobile TV, an area of future growth. Continue reading →

Posted in FDI and Foreign Trade, IT & Telecom, Legal and Regulatory, Regulatory Update | Tagged India Broadcastng Services, India Cable TV, India Direct-to-home, India Foreign Direct Investment, India Head-end in the Sky, India Mobile TV | Leave a comment

India Briefing Now Accessible in Mobile App

Free app brings India Briefing to your fingertips

Dec. 16 – The brand new Asia Briefing mobile application brings the latest business news and foreign investment insights from India Briefing web site right to your fingertips.

The free app integrates with legal and tax regulatory updates from Dezan Shira & Associates, along with China, Vietnam, Russia, Mongolia Briefings, and 2point6billon.com (for emerging Asia). With hourly updates, it helps you stay on top of Asia’s dynamic investment environments. Continue reading →

Posted in IT & Telecom | Tagged Asia Briefing Mobile App, India Briefing Android, India Briefing Blackberry, India Briefing iPad, India Briefing iPhone | Leave a comment

India’s Updated 2011 Foreign Trade Statistics

Dec. 7 – The value of India’s exports throughout October 2011 were recorded at US$19.87 billion, good for a 10.82 percent increase over the level of US$17.93 billion during October 2010. The increasing value of exports for the period of April-October this fiscal year was US$179.78 billion against US$123.17 billion over the same stage last year, recording growth of 45.96 percent.

India’s monthly imports during October 2011 were recorded at US$39.51 billion, showing a development of 21.72 percent over the level of US$32.46 billion experienced in October last year. The swelling value of imports for the period of April-October this fiscal was US$273.47 billion as against US$208.82 billion over the same period last year, recording an increase of 30.96 percent. Continue reading →

Posted in Business, Economy and Politics, FDI and Foreign Trade, Oil & Petroleum | Tagged India Exports, India FDI, India Foreign Trade, India Imports, India Oil, India Trade Deficit, India Trade Statistics | Leave a comment

Amendments in FDI Policy for India’s Pharma Sectors

Nov. 10 – The government of India has already allowed 100 percent FDI into the pharmaceuticals industry. Recently, the government has reviewed its policy in the particular sector. Below are the specific points:

FDI, up to 100 percent, under the automatic route, would continue to be permitted for greenfield investments in the pharmaceuticals sector.
FDI, up to 100 percent, would be permitted for brown field investments (i.e. investments in existing companies), in the pharmaceuticals sector, under the government approval route. Continue reading →

Posted in Chemical & Pharmaceutical, FDI and Foreign Trade, Legal and Regulatory, Regulatory Update | Tagged Automatic Route, Government Route, India Brownfield Investments, India Greenfield Investments, India Pharmaceutical, India Regulatory | Leave a comment

Highlights of the Drafted Telecom Policy

Oct. 13 – The Communication Ministry of India unveiled the new Telecom Policy which contains new rules for the industry. The revised rules, which will substitute the existing framework that has been in place since 1999, aims to have broadband on demand for all citizens.

According to the new policy, revenue generation will play an inferior role and the major objective is to increase rural teledensity to 100 percent by 2020. The new policy will de-link licenses from spectrum and the term of mobile permits would be divided to 10 years when they come up for renewal. The policy aims to make 300 MHz of spectrum available by 2017 and another 200 MHz by 2020. Continue reading →

Posted in Business, IT & Telecom, Legal and Regulatory | Tagged India Policy, India Telecom, Ministry of Communications | Leave a comment

Public-Private Partnerships in India’s National Highways

Sept. 15 – The Indian government foresees Rs. 50,000 crore (US$10.54 billion) in private investments in the highways sector this fiscal as it awards contracts for building 7,300 kilometers (4,536 miles) of roads.

According to India’s Ministry of Road Transport and Highways, bids for about 4,600 kilometers have already been received or invited this year and the Ministry will award concessions for 7,300 kilometers before the year ends.

In the first four months of the current year, the government has awarded public-private partnership (PPP) projects with an investment of over Rs. 21,000 crore. The bids received are far better than estimated bids for these projects. This will give the government additional revenues of more than Rs. 10,000 crore. Continue reading →

Posted in Automotive, Business, FDI and Foreign Trade, Shipping & Logistics | Leave a comment