Notification has been issued for allowing 100% FDI in Single Brand retail through Press Note No.1 of 2012. Before this notification FDI was allowed in single Brand but it was only up to 51%. Will this make any change? I have serious doubt about its impact. This is because 51% was already allowed till now and the condition which has to be complied for bringing FDI beyond 51% is very top and very few MNC will opt for this route. 100% FDI is allowed under the approval route and is not automatic. The critical condition for FDI beyond 51% is that it will be mandatory for the MNC to do sourcing of at least 30% of the value of products sold from Indian 'small industries/ village and cottage industries, artisans and craftsmen'. SSI is one where investment in Plant & Machinery does not exceed 5 crores. This is the Gross Value before depreciation.
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