As the drop in investment rate of more than 47% in both investment proposals (CMIe data in ET lead – ) and
government infra project approvals shows up in negative cap goods and low GDP growth, the FDI saga is likely to be brought back to finish off positively for this government to keep the India growth agenda with itself.
An invitation to Louis Vitton, Cartier, Armani, Rolex and Ikea
The 100% single brand FSDI approval came through in the morning headlines, adding the usual 30% local sourcing rider allowing that sourcing to be from”Indian” providers” and necessitating the allowed limit of $1 mln( It could be $5 mln so easily if enough lobby pressure is applied) to be invested by the brands in developing such SME (Village industry/SMEs) supply chain themselves and there is hardly anyother option available for Ikea and others with the rider in place to develop such supply chain locally and/or limit participation to 51% and come in with a partner whence they can sell 100% imported units/itsems/SKUs for clothes/shoes accessories or furniture as the case may be.
Ikea for example would think of suppliers for joints, nuts and bolts where applicable/possible or some wood panels for specially introduced furniture lines ( highly unlikely!) or an apparel brand would set up finishing units as India is already a known exporter with a definite quality benchmark in fabrics/leathers/readymades or accessories
Multi brand FDI and Aviation FDI face state and coalition pressures from Mamta Banerjee and the
designated DMK State Aviation minister, already facing tough corruption action in Telecom.
- Single Brand Retail – Indian Govt. approves 100% FDI! (trak.in)
- More FDI soup.. (awardz.wordpress.com)
- Govt notifies 100 p.c. FDI in single brand retail (thehindu.com)
- Food and Fertiliser Subsidies, No FDI, Oil bill and state elections (awardz.wordpress.com)
- FDI failures (awardz.wordpress.com)
- Overseas FDI by India reaches $45 bln (awardz.wordpress.com)
- Happy Thursdays! F&O Expiry vs FDI in retail (awardz.wordpress.com)