| Date: |
03-11-2011 |
| Subject: |
Govt Hints at Early Decision on FDI in Multi-Brand Retail |
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The government today indicated an "early" decision on opening multi-brand retail to foreign investment, stating that the issue is receiving attention "at
the highest level".
"We will take the early and correct view...When I say early view, it means early view," Commerce and Industry Minister Anand Sharma said, when asked whether the much-delayed decision could be expected this year. At present, India allows 51% FDI in single-brand retail and 100% in cash and carry format of the business.
Several global chains like Wal-Mart, Metro and Carrefour have opened their cash and carry stores and are waiting in the wings for opening of the policy for front-end retail.
A group of secretaries headed by Cabinet Secretary Ajit Kumar Seth had in July recommended 51% FDI in the politically sensitive sector. The committee also recommended that at least 50% of the investment and jobs should go to rural areas and the minimum investments should be USD 100 million.
In July 2010, the Department of Industrial Policy and Promotion (DIPP) floated a discussion paper on opening of the multi-brand retail. Global retail giants are eying India's retail sector, dominated by mom and pop stores. Only 4% of India's retail is in the organised sector.
India, which is the second largest producer of food grains and vegetables and fruits, suffers huge post-harvest losses of up to 35-40% due to lack of adequate infrastructure, like cold storage facilities and processing.
Source : moneycontrol.com
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