Govt will consider repealing 51% FDI policy for retail

Posted By: Religare
Subscribe to GoodReturns
Government will consider repealing the 51 per cent FDI policy in multi-brand retail, while no proposal would be entertained for opening supermarkets in India by foreign players, Union Minister Nirmala Sitharaman said s per the PTI report.

"I will go back to the Cabinet and say should we delete one document...I am not going to entertain any proposal in multi-brand retail," the Commerce and Industry Minister told Bloomberg TV India.

The statement comes amid a fresh controversy after the Department of Industrial Policy and Promotion (DIPP) in its consolidated FDI policy retained the previous UPA government's decision to allow foreign retailers to open multi-brand stores with 51 per cent ownership.

She also said "we will ensure FDI in e-commerce doest not become a back door for FDI into multi-brand retail".

Finance Minister Arun Jaitley had recently said the BJP was "never" in favour of allowing foreign direct investment in multi-brand retail and a recent government notification only published the extant policy on it.

Only one investment proposal of the UK-based Tesco has been cleared since 51 per cent FDI was allowed in 2012.

The ruling BJP in its election manifesto had said: "Barring the multi-brand retail sector, FDI will be allowed in sectors wherever needed for job and asset creation, infrastructure and acquisition of niche technology and specialised expertise.

Story first published: Friday, May 22, 2015, 12:30 [IST]
Please Wait while comments are loading...
Company Search
Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'