1. News
January 12, 2018

India allows 100% FDI in retail via automatic route

India’s Union Cabinet has agreed to enable 100% foreign direct investment (FDI) in single-brand retail without prior government approval.

India’s Union Cabinet has agreed to enable 100% foreign direct investment (FDI) in single-brand retail without prior government approval.

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Walmart: Going Beyond Company Disclosures

Walmart has rounded out its fiscal year with a strong set of numbers that show it has taken supply chain disruption, rising costs, heavy inflation, and various other problems in its stride. There is comfortable growth on both the top and bottom lines, which is extremely respectable given tough prior year comparatives. Walmart hiring is slowing down as compared to hiring in the months of April and March in 2022. Walmart posted close to 40,000 vacancies in March and 30,000 in April, which has gone below 10,000 in June 2022. Walmart Company Filings has most of the mentions related to the ESG and COVID-19 themes in 2021. ESG has more than 300 mentions in the company’s 2021 filings which indicates the rising focus on ESG-related issues. Our report on Walmart: Going Beyond Company Disclosures, demonstrates GlobalData Explorer’s ability to:  
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  • Go beyond basic financial information, to access key industry-relevant indicators for a company and how these have progressed over time
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The move to liberalise the FDI policy in the country aims to facilitate business development and allow greater inflows contributing to growth of investment, income and employment, according to the Press Trust of India.

The decision opens the doors for a host of foreign companies, including furniture retailer Ikea and US technology firm Apple.

“The move to liberalise the FDI policy in the country aims to facilitate business development and allow greater inflows contributing to growth of investment, income and employment.”

Under the existing policy, FDI up to 49% is approved under the automatic route, however, companies willing to set up 100% FDI in single-brand retail need to seek governmental permission.

Headed by Indian Prime Minister Narendra Modi, the Cabinet also relaxed sourcing norms for foreign single-brand retailers.

As per the amendments, overseas retailers now no longer require to meet the 30% local sourcing target by their Indian subsidiaries for an initial five-year period, provided they are doing so for their global operations.

In a statement, the news agency stated: “It has been decided to permit single brand retail trading entity to set off its incremental sourcing of goods from India for global operations during initial five years, beginning 1 April of the year of the opening of first store against the mandatory sourcing requirement of 30% of purchases from India.”

Once the five-year relaxation period is completed, foreign retailers need to adhere to the sourcing norms directly towards their local operations, on an annual basis.

PwC India partner Goldie Dhama was quoted by media sources as saying: “Allowing incremental sourcing undertaken by overseas group companies to be counted towards the 30% sourcing commitment for the initial five years will provide single-brand retail trading companies the flexibility and time to align their retail and sourcing business.”

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Walmart: Going Beyond Company Disclosures

Walmart has rounded out its fiscal year with a strong set of numbers that show it has taken supply chain disruption, rising costs, heavy inflation, and various other problems in its stride. There is comfortable growth on both the top and bottom lines, which is extremely respectable given tough prior year comparatives. Walmart hiring is slowing down as compared to hiring in the months of April and March in 2022. Walmart posted close to 40,000 vacancies in March and 30,000 in April, which has gone below 10,000 in June 2022. Walmart Company Filings has most of the mentions related to the ESG and COVID-19 themes in 2021. ESG has more than 300 mentions in the company’s 2021 filings which indicates the rising focus on ESG-related issues. Our report on Walmart: Going Beyond Company Disclosures, demonstrates GlobalData Explorer’s ability to:  
  • Track and monitor a company’s movements through alternative indicators to gain insights into the strategy before it is disclosed by the company
  • Gain insight into a company’s capital deployment strategy, by assessing historical deal volumes and specific transactions executed by the company, in addition to identifying sectors of focus
  • Go beyond basic financial information, to access key industry-relevant indicators for a company and how these have progressed over time
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.