A number of top UK companies are planning to set up shop in India after it was announced that the government in that country has officially allowed wholly foreign-owned firms to enter the single-brand retail sector.
The move means companies such as Adidas, Nike, IKEA and Marks & Spencer, who are rumoured or known to have a desire to expand into India, will no longer require a domestic partner to operate in the country.
Firms could previously only own up to 51% of a retail joint venture.
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If firms do own more than 51% they are required to source 30% of materials and products locally, a condition that would suit a firm such as IKEA, which has long been keen on entering the Indian market, because it already sources items such as rugs and ceramics from India.
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