The Indian Government has started a process of discussion with various consumer organizations in the country to arrive at a consensus on the issue of allowing foreign direct investment (FDI) in multi-brand retail sector.
The consultation process is being undertaken by the Ministry of Consumer Affairs, which is responsible for consumer interest.
In addition, the Department of Industrial Policy and Promotion (DIPP) has also begun discussions on the issue with stakeholders.
The Cabinet decision of November 24, 2011 allowing 51 percent FDI in India's multi-brand retail sector was put on hold due to logjam in Parliament over the issue.
Several States that are opposing FDI in multi-brand retail say the move would push thousands of traders out of business.
In addition, some major consumer cooperatives including the Gujarat Cooperative Milk Marketing Federation (GCMMF) are opposing the Centre's move to allow entry of foreign investment in multi-brand retail.
If the Government succeeds in convincing consumer bodies and other political parties to allow foreign retailers to invest in multi-brand retail sector, it would clear the route for global giants like Wal-Mart, Carrefour and Tesco, to open their supermarket chains in India. These firms are currently only allowed to own 100 percent of back-end cash-and-carry operations for supplying to wholesalers.
Fibre2fashion News Desk - India
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