Govt rejects Zara's proposal

Zara’s proposal to set up single-brand retail stores on Indian shores has been rejected by the government. The application spoke of setting up a joint venture with 51 per cent foreign equity participation for single-brand retail trading. The joint venture company was to be set up with foreign equity participation for single-brand retail trading of Massimo Dutti in India. The FIPB rejected the proposal citing violation of a rule framed by the Department of Industrial Policy and Promotion (DIPP) under which an investor must own the brand it proposes to bring to India.