Home / Knowledge / News / Apparel/Garments / Govt retains UPA policy on FDI in multi-brand retail
Govt retains UPA policy on FDI in multi-brand retail
21
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

Must ReadView All

Courtesy: Li & Fung

Textiles | On 29th Mar 2017

Li & Fung introduces new 3-year plan 2017-2019

Li & Fung Limited has outlined its next Three-Year Plan (2017-2019)...

Courtesy: Carrington

Apparel/Garments | On 29th Mar 2017

Carrington Workwear signs JV with TMG Textiles

Carrington Workwear, one of the largest producers of workwear fabrics ...

Apparel/Garments | On 29th Mar 2017

Jabong launches Aeropostale on its platform

Jabong has added leading American high-street fashionwear brand,...

Interviews View All

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

Anshul Sood
Oceedee

‘Indian footwear market is nascent and largely a trend follower’

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
March 2017

March 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search