Policy on FDI - Multi Brand Retail
GOVERNMENT has notified the revised Policy on Foreign Direct Investment- allowing FDI in Multi-Brand Retail Trading.
PROHIBITED SECTORS:
FDI is prohibited in:
(a) Lottery Business, including Government /private lottery, online lotteries, etc.
(b) Gambling and Betting, including casinos etc.
(c) Chit funds
(d) Nidhi company
(e) Trading in Transferable Development Rights (TDRs)
(f) Real Estate Business or Construction of Farm Houses
(g) Manufacturing of Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes
(h) Activities / sectors not open to private sector investment e.g. Atomic Energy and Railway Transport (other than Mass Rapid Transport Systems).
Foreign technology collaboration in any form, including licensing for franchise, trademark, brand name, management contract, is also prohibited for Lottery Business and Gambling and betting activities.
- Minimum amount to be brought in, as FDI, by the foreign investor, would be USD 100 million.
- At least 50% of total FDI brought in shall be invested in 'backend infrastructure' within three years of the first tranche of FDI.
- At least 30% of the value of procurement of manufactured Processed products purchased shall be sourced from Indian 'small industries' which have a total investment in plant & machinery not exceeding USD 1.00 million.
- Retail sales outlets may be set up only in cities with a population of more than 10 lakh as per 2011 Census.
- Government will have the first right to procurement of agricultural products.
- Retail trading, in any form, by means of e-commerce, would not be permissible, for companies with FDI, engaged in the activity of multibrand retail trading.
Government has also released the revised policy for FDI in Single-Brand Product, Civil Aviation sector, Broadcasting Sector, Power Exchanges.