Italian fashion brand, Naracamacie, is keen to enter the Indian retail market, and has sought government permission for the same. In an application made through a potential franchisee, Sagar Shwekramani of the UAE, Naracamacie has told the Foreign Investment Promotion Board (FIPB), the key wing in the Finance Ministry for vetting FDI proposals, of its interest in being a player in the India market. Shwekramani is a name associated with the fashion industry.
The Indian government permits up to 51 per cent FDI in single-brand retailing. There are indications that the rules may be relaxed further in the single-brand space, once foreign play is allowed in multi-brand retailing. Currently, no foreign investment is permitted in multi-brand retailing, but a change in regime is expected in the near future. There’s no restriction on FDI in cash and carry or wholesale trading in the country.
Currently, there are an estimated 200 foreign brands in India.