H&M is moving closer to its Indian debut.

Having consulted the Indian government, the value fashion retail giant is likely to propose an initial investment of around INR700 crore (£85m) in the country. H&M said it would comply with the investment rules for single-brand retailing, including the mandatory 30% local sourcing, preferably from small and medium enterprises.

The retailer already sources about $200m (£131m) worth of products from India annually and once it sets up its Indian subsidiary, the figure is likely to increase.