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Govt evaluating 6 FDI proposals in single brand retail sector

17 Dec 2014 Evaluate

In what could be a potential development for the single brand retail sector, government has been examining six proposals for foreign direct investment (FDI) in the sector for approval. It was back in January 2012, government raised FDI cap in single-brand retail to 100% from 51% and approved around 18 proposals worth $173 million during April 2010 and May 2013.

While, Minister of State for Food and Consumer Affairs Raosaheb Patil threw some light on FDI in single brand retail issue, it maintained that the government had yet not taken any decision on FDI in multi-brand retail and also highlighted that presently no application for investment in multi-brand retail trading was pending.

As per the current policy, 51% FDI is permitted in multi-brand retail trading. However, when the UPA-led government announced the policy, BJP had strongly opposed it. Recently too, Commerce and Industry Minister Nirmala Sitharaman in August 2014, highlighted that NDA government would not entertain foreign direct investment in multi-brand retail.

Notably, the government has not initiated any move to scrap the policy of allowing FDI in multi-brand retail approved by the previous UPA government and if reports are to believed the government would leave the implementation of this policy on states.

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