FDI limit in luxury may go up

India is open to increasing the limit of foreign direct investment by luxury brands from the existing 51 per cent said Commerce and Industry Minister Kamal Nath at the FICCI-Comite Colbert Round Table, reports Vinod Nair.

India is open to increasing the limit of foreign direct investment by luxury brands from the existing 51 per cent. This was stated by Commerce and Industry Minister Kamal Nath at the FICCI-Comite Colbert Round Table on ‘New Initiative From The Luxury Industry in India and France’ in Paris.

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Answering a question posed by Louis Vuitton Chairman and CEO Yves Carcelle as to whether India would allow luxury brands to invest 100 per cent in the country, Nath said, “we have increased the limit to 51 per cent against much opposition in 2006. As for 100 per cent investment, so far we have not received any such proposal. When we get it we certainly will look into it.”

“When the US and Europe are struggling with the financial turmoil, India is till going strong. Like here there’s no gloom in India, instead there's a boom, the minister said.”