100% FDI in Single Brand Retail to Bring New Year Cheers, Says JLL India

MUMBAI, January 10, 2018 /PRNewswire/ --

"The government's decision to grant 100% FDI for single brand retail is a major step in providing quantum growth to the retail sector. The timing for this announcement is significant as the retail sector is poised to receive significant real estate supply in the near future. After a prolonged period of slowdown in the retail sector over the last few years, we saw strong comeback with developers and investors betting high on the sector. Retail saw significant increase in PE investments in 2016 - 17 indicating a significant growth in Retail real estate in the coming years. The announcement in favour of 100% FDI through direct route will open up India as a global retail market," says Pankaj Renjhen, Managing Director, Retail, JLL India.

The government has further facilitated the retail sector by relaxing the norm of mandatory purchase of 30% of purchases from India. This will allow global retailers to come in with international merchandise without concerns of loss of quality and brand equity. Further, retailers will be able to start operations and will have 5 years to find Indian partners and vendors that qualify in terms of quality and price.

The government today approved the long standing demand for 100 percent Foreign Direct Investment (FDI) in single-brand retail via automatic route. Currently, FDI, up to 49 per cent is allowed under automatic route but any investment beyond the limit requires government approval. The opening up of the Indian market will be significant in allowing growth in overall commerce of the country.

With most economic agencies including World Bank, S&P and Moody's continuing to show a strong economic growth of GDP over 7% for the next three years (2018 - 2020), the possibility of growth for global retailers in India is strong. As per industry estimates, Indian retail sector is pegged at INR 1 trillion by 2020 at an estimated CAGR of 15%. This move of opening up FDI for single brands will be as strong catalyst for the sector to reach and exceed its potential in India. 

About JLL India: 

JLL is India's premier and largest professional services firm specializing in real estate. With an extensive geographic footprint across 11 cities (Ahmedabad, Delhi, Mumbai, Bangalore, Pune, Chennai, Hyderabad, Kolkata, Kochi, Chandigarh and Coimbatore) and a staff strength of 9,300 the firm provides investors, developers, local corporates and multinational companies with a comprehensive range of services including research, analytics, consultancy, transactions, project and development services, integrated facility management, property and asset management, sustainability, industrial, capital markets, residential, hotels, health care, senior living, education and retail advisory. The firm was awarded the Property Consultant of the Decade at the 10th CNBC-Awaaz Real Estate Awards 2015 and the Best Property Consultancy in India at the International Property Awards Asia Pacific 2016-17.

For further information, please visit http://www.jll.co.in

Media Contact:
Piyali Dasgupta
Associate Director -
Marketing and Communications
JLL India
T : +91-22-7149-5913
M : +91-98335-71204
[email protected]