Government has made it clear that Foreign Direct Investment up to 51 per cent in retail of single brands, which was allowed last year, should conform to certain policy norms, including an obligation on the foreign firm to sell the products under the same brand internationally.
“Single brand product retailing would cover only products, which are branded during manufacturing,” a statement from the Department of Industrial Policy and Promotion said here.
Besides, products should be sold under a single brand internationally, it said.
Under the existing policy, the government allows FDI only in single brand retail and cash and carry wholesale business by global retail chains.
US retail major Wal-Mart has signed up a joint venture with the Bharti Group for the cash and carry business model.
Global luxury brands such as Fendi, Louis Vuitton, Nike, Llardo, Rino Greggio, Damro, ETAM, Zegna and Lee Cooper were among the first to get FDI permission under the single brand retail window.
