FDI reforms in single-brand retail a win-win for global firms: Deloitte

The government's announcement to allow single-brand retailers to sell goods online first before opening brick-and-mortar stores is a win-win for global players to tap the domestic market, consultancy firm Deloitte said on Saturday.

The government recently relaxed norms for single-brand retailers having foreign investment to attract global players. It has now permitted them to sell goods through online stores before opening brick-and-mortar stores within two years.

It has also relaxed certain provisions for complying with the mandatory 30 per cent local sourcing requirements.

"A retail company can now start selling to the Indian consumers via online platform and open up a physical store later (within a period of two years). This is going to be a clear win-win for global retailers to tap the Indian market sitting overseas," Anil Talreja, Partner at Deloitte India, said.

He said the move would also give a boost to the pillars of the Indian retail industry in the form of transportation, payments, customer care and warehousing.

"The Indian customer stands to gain as he gets the goods before the opening of the store in India. The retailer stands to gain as he can tap the Indian market earlier than never before," he added.

On permitting 100 per cent foreign direct investment in contract manufacturing, Talreja said that with this the government has substantially expanded the arena for the foreign investors to play in India.

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