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More foreign retailers seek India opportunities – Retail in Asia

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More foreign retailers seek India opportunities

At least four foreign retailers have sought permission to set up wholly owned operations in India to sell their own brands since September, when the government relaxed a sourcing rule which was seen as an impediment to investment by some companies.

The government in September relaxed an earlier condition that foreign single-brand retailers must source at least 30 percent of the value of their sales in India from small and medium-sized local companies. Companies such as Swedish furniture giant IKEA Group had seen the rule as an obstacle, because they said finding suitable local suppliers to start operations would be difficult.

French cookware maker Le Creuset S.A., Thailand-based luxury goods retailer Lotus Arts de Vivre, French sportswear company Decathlon S.A. as well as jewellery and watch maker Fossil Inc. of the US have applied for investment permissions since September, two officials at India’s trade ministry said on Thursday.