The Indian government has announced that it has raised the limit for the ownership of single-brand stores by foreign companies, bringing it from 51% to 100%. With this decision, comments Altagamma, "one of the two great obstacles to development in the Indian market by international high-end companies has been successfully resolved, that of 100% ownership of single-brand retail".
The 51% limit for store ownership, in fact, represented for international brands “a limit to complete control of distribution and return on investment. The Government of India announced today that it has raised the quota to 100%, effectively opening the door to full Foreign Direct Investment. For seven years, the Altagamma Foundation has worked with Indian institutions to improve the framework conditions of the Indian market with a view to Free and Fair Competition. This decision will give a potential boost to the growth of the presence of Italian and international brands in a promising market”.
Altagamma also requests that, "in order for this decision to bring effective benefits to companies, within the framework of the negotiations underway between the European Union and the Indian Government for the achievement of a Free Trade Agreement, there is also a significant cut in customs duties, such as to reduce by more than half the very high percentages currently in force (from 34% upwards)”.
