Inditex-owned fashion brand Massimo Dutti has reportedly had its application to enter India accepted by the country’s Foreign Investment Promotion Board (FIPB).
Massimo Dutti was given the green light last Tuesday (27 August), according to a Business Standard report.
The move comes a year after the brand’s first application to enter the country through a 51:49 joint venture between Netherlands-based Zara Holding and Tata Group’s retail division Trent was rejected.
In January, the Indian government agreed to allow 100% foreign direct ownership in single-brand retail. The move was aimed at attracting investments in production and marketing, improving the availability of goods, encouraging increased sourcing of products from India and enhancing the competitiveness of Indian companies.
The Indian government earlier this month eased restrictions on foreign investment into the multi-brand retail sector, nearly a year after initial reforms were introduced.
A spokesperson for Inditex told just-style that the company has not received any communication about the application. The FIPB, meanwhile, has not yet responded to requests for comment.