May review retail FDI norms: Nath

PARIS: India will look at removing the cap of 51% in single-brand retail, commerce and industry minister Kamal Nath said here.

���If so required, we will certainly look at it,��� he said in his interaction with top French luxury designers under the aegis of Ficci and Comite Colbert. He was asked whether the Indian government will consider allowing 100% FDI in single-brand retail. Since the government allowed 51% in 2005, several global luxury brands have set up joint ventures in the country. Louis Vuitton president Yves Carcelle, who raised the question of removing the FDI cap, asked, ���Why will anybody come unless they allow 100%?���

In India, besides 51% FDI allowed in single-brand retail, 100% is allowed in cash-and-carry trade. However, FDI in multi-product retail is still not allowed due to wider political opposition. Organised retail accounts for less than 5% of the $400-billion retail market in India.

The single-brand retail window has encouraged many foreign companies to tap India's retail sector, but some of the world's biggest retailers have in the past sought more liberalised norms. US retailer Wal-Mart has tied up with domestic conglomerate Bharti to set up wholesale operations.