American lifestyle brand Fossil now plans to invest $4.5 million to set up single brand stores in India.

The investment plan comes after the Indian government approved its application to invest in single brand retail.

Fossil plans to open 21 retail stores over the next 36 months, primarily in metro cities.

While known as a watch retailer, Fossil also offers a range of lifestyle products including sunglasses and leather goods like wallets, handbags and belts.

Fossil assured it can comply to the mandated 30 per cent sourcing clause by ramping up production at its manufacturing unit at Palwan in Himachal Pradesh.