The government has approved the proposal of the Department of Industrial Policy and Promotion for allowing 51 per cent Foreign Direct Investment (FDI) in the Multi-Brand Retail Trading. It also decided to allow 100 per cent FDI in Single-Brand Retail Trading. In his written statement laid in both the Houses today, the Commerce and Industry Minister, Mr Anand Sharma said fresh agricultural produce including fruits, vegetable, flowers, grains, pulses, fresh poultry, fishery and meat products may be unbranded.

Minimum amount to be brought in by a foreign investor would be one hundred million US Dollars. The statement said that at least 50 per cent of the total FDI shall be invested in backend infrastructure like investment in processing, manufacturing, distribution, design improvement, quality control, packaging, logistics and storage. It further said that at least 30 per cent of the procurement of the manufactured and processed products shall be sourced from small industries which have a total investment in plant and machinery not exceeding one million US Dollars.

Referring to the Single-Brand Retail Trading, the statement said the product should be sold under the same brand in one or more countries other than India. Also the foreign investor should be the owner of the brand. Single-Brand product-retailing would cover only products which are branded during the manufacturing.