| 1. a ceiling of 51% |
2. minimum amount to be brought in as FDI by the foreign investor is US  100 million. |
| 3. at least 50% of the procurement of manufactured/processed products should be sourced from 'small industries'. |
| 4. retail sales locations set-up only in cities with a population of more than 10 lakh. |
A) 1, 2, 3 and 4
B) 1 and 4
C) Only 2
D) 1, 2 and 4
Correct Answer: D
Solution :
| In respect to multi-brand retail trading, changes made in 2012 permitted up to 51 % FDI with prior government approval. The foreign investor has to bring in a minimum investment of USD 100 million in an entity engaged in multi brand retail trading. Similar to the requirement of mandatory local sourcing as applicable in single brand product trading (prior to Cabinet meeting) at least 30% of the procurement of manufactured/ processed products shall be sourced from 'small industries'. |
| The reach of retail sales outlets of foreign multi brand retail trader will be limited to only those cities with a population of 1 million (including an area of 10 kilometres around the municipal/urban agglomeration limits of such cities). |
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