Swedish fashion retail giant, Hennes & Mauritz (H&M) has said that it is planning to invest 100 million euros or about Rs 700 crore initially to set up about 50 stores across India.

H&M, which is the second-biggest fashion retailer in the world, is the second retail firm from Sweden seeking permission to enter the growing Indian retail market. Home furnishing giant, IKEA has already received an approval from the Foreign Investment Promotion Board (FIPB) to enter the Indian market.

H&M has submitted its application to open 50 stores under a single brand format in the country. Following the reports on the new investment proposal from H&M, the Union Minister for Commerce & Industry and Textiles, Anand Sharma said that the Indian Government is working to form liberal economic policies. The government is looking to attract more investment as it helps fund the current account deficit.

"After the liberalization of FDI policy in single brand retail, there has been a considerable interest shown by all global retail majors. The government remains committed to liberal economic reforms agenda. We view foreign investments as a source of technology, finance and means of creating gainful employment in the country," Sharma added.

H&M has applied for 100 per cent single brand investment through wholly owned subsidiary of the brand owner.