The Union Cabinet had decided to allow up to 51 per cent FDI in multi-brand retail and increase the foreign investment level to 100 per cent in single-brand. However, the government was forced to keep in abeyance the multi-brand FDI decision, at least till after the elections in five states, due to political opposition. On single-brand, it waited for the Parliament session to get over before notifying the policy.
At least 30 per cent FDI is mandatory for sourcing from Indian SMEs. The statement allows French luxury chain Christian Louboutin to open stores in India. Also, the commerce ministry notified the much-awaited policy, permitting up to 100 per cent FDI in single-brand retail, up from 51 per cent.