"H&M has applied and Honda has applied," secretary in the Department of Industrial Policy and Promotion (DIPP) Saurabh Chandra said.
HMSI, the wholly-owned subsidiary of the Japanese auto giant Honda, which had sought approval of the Foreign Investment Promotion Board (FIPB), has proposed to sell products like two-wheelers, motorcycles, spare parts and accessories in their stores.
At present, the firm sells its vehicles as well as spare parts through franchises.
On the other hand, H&M has proposed an investment of 100 million euros (around Rs 700 crore) for opening up of 50 stores.
Globally, H&M has around 2,800 stores spread across 49 markets, employing over one lakh people.
While Germany is its largest market, the US is its second biggest market followed by UK and France.
Founded in Sweden in 1947, in addition to H&M, the group has brands including COS, Monki, Weekday and Cheap Monday and Other Stories as well as H&M Home.
Since the government relaxed FDI norms last year, many foreign retailers have taken steps to open stores in India. So far IKEA's Rs 10,500 crore investment plan to set up its chain of stores across India remains the biggest proposal.