The Indian government is reportedly proposing to increase the limit on foreign direct investment in single-brand retail.

According to reports in the Times of India, the government is considering lifting the limit from 51% to 100%, a move which it said is expected to encourage the likes of Ikea and Louis Vuitton to enter the country.

It had earlier proposed to increase the cap to 74%, but has decided to adopt a more aggressive stance.

An official told the publication that you cannot expect companies to have five stores in five-star hotels and source from local vendors. "In the absence of scale, it makes more sense to import and sell in the Indian market," the official said.