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Govt retains UPA policy on FDI in multi-brand retail
Oct '15
The present Indian government has retained the policy of the previous UPA government on foreign direct investment (FDI) in multi-brand retail trading, which put the upper cap at 51 per cent.
No proposal seeking to invest more than 51 per cent in multi-brand retail trade would be approved by the present government during its tenure, BJP spokesperson GVL Narasimha Rao said while addressing a press conference at the party headquarters in New Delhi.
To a query whether the government should rescind the UPA government's policy, Rao said, “Leave that wisdom to the government.”
Earlier this month, a joint study by the Associated Chambers of Commerce & Industry of India (Assocham) and Standard Chartered Research said allowing 100 per cent FDI in multi-brand retail will transform the retail landscape in a significant way.
The study said, “The world has entered in its third super cycle characterised by Industrialisation, Urbanisation and International trade.” FDI would not only prove to be fruitful for the economy as a whole but will also integrate our retail with the global retail market. In the Chinese market, deployment of 100 per cent FDI was done in 2004, and today its retail sector is the second largest (in value) in the world.
In a true potential scenario, opening up of FDI can increase organised retail market size to $260 billion by 2020. FDI in multi-brand retail will give a boost to the organised retail sector, which positively impacts several stakeholders, including producers, workers, employees, consumers, the government, and, hence, the overall economy, the study said.
But what the BJP spokesperson has said now is not new. Earlier in May this year, the government had released its consolidated FDI policy which retained previous UPA regime's decision allowing foreign retailers to open multi-brand stores with 51 per cent ownership.
The multi-brand retail was opened up for foreign direct investment, with a 51 per cent cap, in September 2012, when the Congress-led UPA government was in power. (RKS)

Fibre2Fashion News Desk – India

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