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Showing posts from October, 2012

WHY FDI IN MULTI BRAND RETAIL SHOULD NOT BE ALLOWED: A CONSTITUTIONAL PERSPECTIVE

Why FDI in Multi brand should not be allowed? FDI‘ means investment by non-resident entity/person resident outside India in the capital of an Indian company   under Schedule 1 of Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations 2000. [1] Entry into single brand retail is allowed in 2006 upto 51% that too is subject to some pre conditions:- company should be the owner of the product and the products should be branded during manufacturing [2] . There are many foreign   companies that have entered Indian retail sector through single brand like Reebok, nike. Single brand deals with one particular line of product to be sold under the single brand name to the end users for example reebok and nike sells shoes and related products in India. Multi brand deals with different lines of products to be sold to the end users. For example Indian company reliance is a multi brand company dealing in Jewellery, food s...