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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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.
-
FTSE 100 hits record highs – why is it rising and will we see more gains?Advice UK equities have been described as unloved for a long time but as the FTSE 100 hits new highs, we explain if now is the time to buy British.
-
How to invest in copperIt may be time to invest in copper as the red metal appears poised for a big jump. Dominic Frisby looks at what should investors should buy
