Government plans to redo FDI norms for franchise agreements
Many luxury brands are likely to find it harder to enter the Indian retail market as the government is planning to change its foreign direct investment (FDI) norms. Specifically, rules regarding franchise agreements that take place between Indian companies and overseas partners are being changed. Once this change takes place, franchise agreements in sectors that do not allow automatic foreign direct investment will be affected. Brands such a Chanel, Ferragamo, Valentino and Tiffany operate in India via this franchising route and Gucci, FCUK and Starbucks are planning on entering the market via a franchising agreement.
Popularity: 10% [?]
Sphere: Related Content