What is the permissible limit (in percentage) for Foreign Direct Investment (FDI) in the retail sector through the automatic route in India?

Correct option is D

The correct answer is (d) 100%
Explanation:
• The Government of India allows 100% FDI in Single-Brand Product Retail Trading (SBRT) under the automatic route.
• This means foreign companies can own and operate retail stores for a single brand (e.g., Apple, Nike) without prior government approval.
• For Multi-Brand Retail Trading (MBRT) (e.g., Walmart), FDI is permitted up to 51% via the Government Route (approval required).
• In Wholesale Cash & Carry trade, 100% FDI is allowed under the automatic route.
• These policies are formulated by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry.
Information Booster:
• The Automatic Route means the non-resident investor or the Indian company does not require any prior approval from the RBI or the Government of India.
• FDI is a major source of non-debt financial resources for the economic development of India.