| Date: |
22-10-2010 |
| Subject: |
Ministry Panel for 49% FDI in Multi-Brand Retail |
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International retail chains may get to set up shop in India soon with the Finance Ministry coming around to the idea of permitting foreign direct investment (FDI) in multi-brand retail. An internal committee set up by the Ministry is learnt to be in favour of allowing FDI up to 49 per cent to begin with in multi-brand retail.
“The general consensus is that FDI in multi-brand retail should be allowed. But instead of allowing 100 per cent FDI in the sector, it should be a gradual process and can be started with a cap of 49 per cent on such investments,” said a source familiar with the development.
The broad consensus in the Ministry is in response to a discussion paper by the Department of Industrial Policy and Promotion (DIPP) on the issue, and will boost international retail giants such as Walmart, Carrefour and Tesco that have been lobbying for foreign investment in multi-brand retailing.
Source : indianexpress.com
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