This question asks about the specific percentage limit for Foreign Direct Investment (FDI) that was permitted in the single-brand retail sector prior to a policy change in January 2018.

Understanding FDI in Single-Brand Retail

Foreign Direct Investment (FDI) refers to an investment made by a company or individual from one country into business interests located in another country. In the context of single-brand retail, FDI allows foreign companies to invest in Indian ventures that sell goods or services under only one specific brand name.

The Indian government has periodically reviewed and updated its FDI policies to attract foreign investment while protecting domestic businesses. Changes in these policies often involve adjusting the permissible percentage of foreign ownership.

Previous FDI Limit for Single-Brand Retail

Before the amendment that took place in January 2018, the government had established specific regulations regarding the extent of foreign investment allowed in single-brand retail trading companies. According to the policy framework preceding the January 2018 changes, the previously allowed percentage of FDI for single-brand retail was $49\%$.

The amendment in January 2018 brought further modifications to the FDI policy, impacting sectors including single-brand retail, though this question focuses specifically on the limit that existed just before this update.