FDI news and archive

Enforcement Directorate files FEMA complaint against Myntra over FDI violations

The Enforcement Directorate (ED) has filed a complaint under the Foreign Exchange Management Act (FEMA) against online fashion retailer Myntra, its affiliate companies, and directors. The federal financial crimes probe agency alleges that Myntra engaged in "multi-brand retail trading in the guise of wholesale cash and carry," a practice deemed a...

Retail

India eases local sourcing norms for single brand retail

The recent Budget has eased local sourcing norms for foreign direct investment for single brand retail. This could benefit most global apparel retail brands like H&M, M&S, Zara etc. While there was a recent relaxation provided to offset the sourcing from India for global operations against the local sourcing, the same didn't have the expected...

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Retail

Government allows 100 per cent FDI in e-commerce marketplace

The National Democratic Alliance (NDA) government has allowed 100 per cent foreign direct investment (FDI) in e-commerce marketplaces. And the Department of Industrial Policy & Promotion (DIPP) has clarified that the FDI is only for the marketplace format of e-commerce and not for inventory-led models. It has defined e-commerce as buying and...

Retail

India Inc supports FDI in multi-brand retail, education and e-commerce

In a pre-Budget meeting with the commerce and industry ministry, India Inc requested the government to further ease Foreign Direct Investment (FDI) norms in certain sectors such as multi-brand retail, education and e-commerce. Even insurance, the industry czars, said should be liberalised. Federation of Indian Chambers of Commerce and Industry...

Retail

India’s e-commerce business to be redefined

Commerce and Industry Minister Nirmamala Sitharaman has said the government is working on a proper definition to bring clarity on a host of issues including taxation, in view of ‘very complex’ and ‘multi-layered’ business structure of e-commerce firms. Sitharaman said that they have had meetings with stakeholders and the state governments had...

Fashion

Delhi HC directs ED to enquire about FDI violations by ecom firms

The Delhi High Court has ordered the Enforcement Directorate (ED) to find out whether ecommerce companies such as Snapdeal, Jabong, Myntra and Amazon-owned Junglee have violated the country's foreign direct investment (FDI) rules by deploying overseas funds. The court passed the order while hearing a case filed against the government by shoe...

Fashion

Small retailers move court over FDI violation by ecommerce firms

A group of small retailers has approached the Delhi High Court, seeking government probe into possible foreign investment violation by ecommerce companies under the Foreign Exchange Management Act, for allegedly misusing foreign funds while selling products to consumers. India does not allow foreign direct investment (FDI) in any...

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Business

NDA-govt finally opens country’s doors to foreign retailers

Despite its strong opposition to foreign direct investment (FDI) in multi-brand retail, which was also a part of its election manifesto, the NDA government has finally opened its doors to mega retailers like Walmart and Carrefour. These global giants can now invest in India’s multi-brand retail through the foreign portfolio investment (FPI)...

Retail

Govt to simplify FDI guidelines for physical and ecommerce retail

After the Union government held discussions with stakeholders of ecommerce market over FDI amid opposition from the Retailers Association of India (RAI) and CAIT, it aims to issue guidelines for the country’s fastest growing e-commerce sector. According to Department of Industrial Policy and Promotion (DIPP), the government will keep the issues...

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Business

CAIT to strongly oppose every move to bring FDI in retail

As Narendra Modi-led NDA government decides on allowing 51 percent FDI in multi brand retail, the Confederation of All India Traders (CAIT) has appealed to the government to stick to its election manifesto. The BJP in its election promise had expressed its opposition to the foreign investment policy. The CAIT has also demanded suspension of any...

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Business

NDA govt retains 51 percent FDI in multi-brand retail

The BJP-led NDA government has retained the previous UPA regime's decision allowing foreign retailers to open multi-brand stores with 51 percent ownership, a consolidated FDI policy document released said. The previous government allowed 51 percent foreign investment in multi-brand retail in 2012 but left the final decision of letting foreign...

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Business

DIPP urges for an increase in FDI limit to Rs 3,000 cr

The department of industrial policy and promotion (DIPP) has submitted a draft cabinet note proposing an increase in foreign direct investment (FDI) threshold to Rs 3,000 crores from the current Rs 1,200 crores. For now, FDI proposals below the current limit in infrastructure and manufacturing sectors need Foreign Investment Promotion Board’s...