The Finance Minister of India, Pranab Mukherjee said that discussions were going on to further liberalise the FDI Policy. "Discussions are underway to further liberalise the FDI (foreign direct investment) policy," he said at the annual conference of chief commissioners and directors general of Central Board of Excise and Customs (CBEC).
Pranab also stated that a comprehensive document has been prepared to make the FDI policy more user- friendly. This document is reviewed every six months.
Constant talks have been happening around to allow FDI in multi-retailing. This statement made by the Finance Minister may bring benefit for multi-retail, by relaxing FDI norms. Companies like Walmart, Metro and Carrefour have been eager on this front. Even the Chief Economic Advisor, Kaushik Basu was in favour of loosening the FDI norms associated with multi-retail.
Organized trade stands at a meager 4% of the total retail trade in India, with the unorganized retail sector employing 33 million people. Therefore, the decision to open up FDI in multi retail still remains unsolved.