Govt for discussion on FDI in multi-brand retail

New Delhi, Apr 26 (PTI) India Monday said it would next
month initiate discussion on liberalising Foreign Direct
Investment (FDI) in sectors ranging from defence to
agriculture and even retail- a source of political woes for
the government in the past.
The Department of Industrial Policy and Promotion (DIPP),
the nodal agency for framing FDI policies, will come out with
six discussion papers in mid-May on overseas investment norms.
"All the issues, which are troubling you will be covered
(in the discussion papers)," DIPP Secretary R P Singh told
reporters at a Federation of Indian Chambers of Commerce and
Industry (FICCI) event in New Delhi when asked if multi-brand
retail would also figure in the discussion papers.
In its first term, the United Progressive Alliance (UPA)
government had shelved plans to open FDI in multi-brand retail
owing to fierce opposition from the Left parties, its then
allies, and petty traders.
India, however, allows 51 per cent FDI in single brand
retail and 100 per cent in cash-and-carry (wholesale) sector.
While transnational companies like WalMart, Carrefour and
Indian industry chambers are pitching for opening up multi-
brand segment, a Parliamentary panel has proposed a "blanket
ban" on entry of corporates into this unorganised sector
employing millions of people.
Sources in the DIPP said the discussion papers, which
would be put in public domain on May 12 or 13, would deal in
sectors like retail, defence, pharmaceutical and agriculture.
The DIPP would seek public comments on the concept
papers, Singh said.
On pharmaceuticals, Singh said the department was not
averse to FDI, but is demanding review of the policy.
"They (Department of Pharmaceutical) are not opposing
(FDI). They are only saying that FDI (policy) should be
reviewed and it should not result in Indian companies being
purchased by outsiders," he said.
India allows 100 per cent FDI in drugs and
pharmaceuticals through automatic route.
In March this year, India had released a compendium of
all the polices related to FDI as part of a drive to make
things simple.
The West, including the US and EU, is separately asking
India to open its financial sector to FDI and a Bill to raise
FDI in insurance sector to 49 per cent from 26 per cent now is
pending clearance in Indian Parliament.
FDI inflows in the first 10 months of 2009-10 were USD
22.9 billion. PTI NKD
MRD


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