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Under the 2018 amendments in Foreign Direct Investment (FDI) policy approved by the Cabinet, the maximum Foreign Direct Investment (FDI) permitted under the automatic route in Single Brand Retail Trading (SBRT) is _____
100%
40%
60%
85%
100%
In 2018, the Government of India liberalized the Foreign Direct Investment (FDI) policy for Single Brand Retail Trading (SBRT), allowing 100% FDI under the automatic route. This change eliminated the requirement for prior government approval for investments in this sector to promote ease of doing business and attract global retail brands.
In 2018, the Government of India liberalized the Foreign Direct Investment (FDI) policy for Single Brand Retail Trading (SBRT), allowing 100% FDI under the automatic route. This change eliminated the requirement for prior government approval for investments in this sector to promote ease of doing business and attract global retail brands.
The FDI policy in India is governed by the Consolidated FDI Policy issued periodically by the Department for Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce and Industry.
100% FDI under the automatic route allows foreign entities to set up retail stores in India without prior government clearance.
The 2018 amendment also relaxed the local sourcing norms to provide more flexibility to foreign retailers.
Prior to the 2018 change, FDI beyond 49% in SBRT required the approval of the Foreign Investment Promotion Board (FIPB), which was later abolished.
Automatic route means the investor does not require prior approval from the Reserve Bank of India or the Government of India for the investment.
Government route requires prior approval from the relevant Ministry or Department.
Option B (40%), Option C (60%), and Option D (85%) are incorrect as they do not align with the current 100% FDI limit policy for SBRT.
A is correct тАФ 100% FDI is permitted under the automatic route for Single Brand Retail Trading.
Distinguish between SBRT and Multi-Brand Retail Trading (MBRT); while SBRT allows 100% FDI, MBRT in India currently allows only up to 51% FDI under the government route, reflecting the sensitivity of multi-brand retail toward domestic small-scale traders.
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