| I. Foreign Direct Investment (FDI) in Retail and Modern Trade | ||
| Sector/Activity | % of Equity/FDICap | Entry Route |
| a) Cash & Carry Whole sale Trading/Whole sale Trading (including sourcing from MSEs)1 | 100 | Automatic |
| b) E-commerce activities2 | 100 | Automatic |
| c) Single Brand Product Retail Trading3 | 100 | Automatic up to 49%. Beyond 49%, through Govt. route |
| d) Multi Brand Retail Trading4 | 51 | Government |
| e) Food Retail | 100 | Government |
| f) Duty Free Shops | 100 | Automatic |
| II. Implementation of Goods and Services Tax (GST) | ||
| Implementation of Goods and Services Tax (GST) w.e.f. 1 July 2017, is expected to facilitate seamless trading across states. It is expected to remove hurdles in interstate movement of goods and turn the concept of one nation one tax into a reality. With GST, traders are spared of the need to comply with multiple taxes and multiple rates. This is also expected to help rationalise logistics operations of trading entities, thereby reducing cost of operation. | ||
| III. Model Shops and Establishments (Regulation of Employment and Conditions of Service) Bill, 2016 | ||
| Shops and Establishments act regulates working conditions of commercial establishments in India. The proposed new bill would cover shops and establishments employing ten or more workers except manufacturing units. The bill has provision for establishments to operate 24 × 7, which is expected to boost retail market. It is expected to boost employment in general and that of women particular, as it allows women working during night shift, which may again boost the retail sector. It is expected that if the model law is adopted by state governments, it will help smooth functioning of services sector, especially the retail sector. | ||
| IV. Other Enabling Measures Impacting Trading | ||
| a) Government’s efforts to promote cashless payments may boost modern/online retail. b) Retail has been accorded status of a priority sector by the government in the National Skill Development Mission. Retailers Association of India is the nodal agency for training the manpower. This would make available the required trained manpower for the growth of the sector. | ||