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Single brand retail cleared

THE GOVERNMENT has opened up the retail sector to foreign direct investment and liberalised the FDI regime in five more sectors. In a cabinet decision on Tuesday, FDI in retail up to 51 per cent has been allowed in single brands like Reebok and Louis Vuitton.

india Updated: Jan 25, 2006 01:13 IST
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THE GOVERNMENT has opened up the retail sector to foreign direct investment and liberalised the FDI regime in five more sectors.

In a cabinet decision on Tuesday, FDI in retail up to 51 per cent has been allowed in single brands like Reebok and Louis Vuitton.

Besides retail, the sectors in which the FDI regime has been liberalised are power trading, processing and warehousing of rubber and coffee, diamond and coal mining, airports and petroleum infrastructure like laying of pipelines, said sources.

In these sectors, FDI up to 100 per cent will be allowed through the automatic route, as recommended by the GoM on FDI.

The GoM, headed by Agriculture Minister Sharad Pawar, had met earlier this month and finalised its suggestions on the review of the existing FDI policy, said the sources.

The idea of opening up more sectors to FDI is to attract more foreign capital by reducing the levels of control in most sectors of the economy, officials said.

Currently, single-brand retailers operate through the franchisee route.

The cabinet also approved doing away with approvals for foreign investments from multiple agencies, particularly in banking and insurance.

First Published: Jan 25, 2006 01:13 IST