Central Government liberalises single-brand retail norms for non-resident entities.

Now non resident single-branded retailers in India can operate their own outlets can franchise their stores and can even opt for wholesale business as per central government’s new notification. These single-brand retailers can opt for above said trading options only when they do business through subsidiaries in India or form a joint venture with Indian entity. Central government allowed single-brand retailers because the proceeds from franchise business will come into the current account while proceeds from FDI will be accounted in the capital account which does not violates rules set for non resident entities doing business in India. Central government norm of 30 percent sourcing from Indian MSEs or cottage industries may be relaxed for all non-resident entities who are involved in FDI beyond 51 percent. At present there is 100 per cent FDI allowed in single-brand retail trading and require prior approval from government for the proposals beyond 49 per cent FDI.