Home / Knowledge / News / Apparel/Garments / Indian states can avert FDI in multi-brand retail
Indian states can avert FDI in multi-brand retail
19
Sep '12
The recent decision of the Indian Government to allow up to 51 percent foreign direct investment (FDI) in the country’s multi-brand retail sector has a condition that the consent of state governments would be necessary.
 
Until now, Congress Party-ruled states of Maharashtra, Haryana, Andhra Pradesh, Assam, Jammu & Kashmir, Uttarakhand, Rajasthan, Manipur and Delhi have announced that they would welcome foreign investments for setting up multi-brand retail outlets in their states.
 
This would essentially mean that global supermarket chains like Carrefour SA, Tesco PLC and Wal-mart Stores Inc would not be immediately able to open their stores in other states of the union, provided they meet other eligibility conditions.
 
Even among the Congress-led states, the Government of Kerala has not shown any eagerness to implement the Cabinet decision. The southern Indian state has a strong Communist presence and the ruling party may not want to risk losing in the next elections, analysts say.
 
Madhya Pradesh, Gujarat and Karnataka, all ruled by the main opposition Bharatiya Janata Party (BJP), have opposed the move terming it as anti-poor.
 
Other states like West Bengal, Uttar Pradesh and Tamil Nadu, which are all ruled by various regional parties, have also opposed the proposal to allow FDI in multi-brand retail, saying the policy is anti-people and would annihilate small traders.
 
In short, the condition that consent of state governments is necessary for allowing foreign investment in multi-brand retail has brought the number of cities that meet the criteria down to 16 from the original 53 that have a population of one million or more.
 
Six of these 16 cities are in Maharashtra, followed by three cities each in Andhra Pradesh and Rajasthan, two in Haryana and one each in Delhi and Jammu & Kashmir.
 
Uttarakhand, Manipur and Assam have no cities with population of one million or more.
 

Fibre2fashion News Desk - India


Must ReadView All

Courtesy: American Silk Mills

Textiles | On 18th Oct 2017

Sutlej Textiles adds American Silk Mills to its portfolio

Sutlej Textiles and Industries Ltd (STIL) has announced the...

Arvind Limited executive directors Punit Lalbhai (left) and Kulin Lalbhai explaining the project to Gujarat chief minister Vijay Rupani. Courtesy: Arvind Ltd

Apparel/Garments | On 18th Oct 2017

Arvind to set up mega apparel facility in Gujarat

Arvind Limited, one of India’s largest textile to retail...

Cotton stocks accumulating everywhere outside of China

Textiles | On 18th Oct 2017

Cotton stocks accumulating everywhere outside of China

Global cotton stocks outside of China are expected to rise by nearly...

Interviews View All

Sonia Agarwal
Whitenife

‘The terms eco-friendly and organic are common but everyone perceives them ...

Giovanni Pizzamiglio, Paolo Crespi & Riccardo Robustelli
Epson, For.Tex & F.lli Robustelli

‘The percentage share of printing in the global textile market is pretty...

Cindy McNaull
Cordura

We have broad range of options in durable fabrics

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Marcel Alberts
Eurofibers

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

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

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

October 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
77.3%
No
13.6%
Skip
9.1%

Total Votes: 66

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
60.6%
No
28.8%
Skip
10.6%

Total Votes: 66

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
84.8%
No
10.6%
Skip
4.5%

Total Votes: 66

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
74.2%
No
12.1%
Skip
13.6%

Total Votes: 66


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search