Question
What is the FDI limit in multi brand retail in India?
Solution
Recently Government of India has allowed 100% FDI in single brand retail sector through automatic route. Earlier the cap was at 51% with many other conditions. Note- Single brand retail Vs multi brand retail: FDI in single brand retail means a foreign company like American brand Levis can directly open its store in India with 100% ownership which will sell only the product of Levis, thus single brand retail. But in Multibrand retail, one brand can sell products of several other companies under one roof. Like Walmart can open its store which can sell various items of different companies.
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