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

Textiles | On 24th Jul 2017

Govt extends deadline for GST composition scheme to Aug 16

The Government on India has extended the deadline for small...

L-R: Dhanapal, JMD, Best Corporation; Prabhu Damodaran, Convenor, ITF; Narayanasamy, MD, Micro Cotspin; Senthilnathan, MD Rasitex India; and Sabapathy, MD, Prasanna Spinning Mills

Textiles | On 24th Jul 2017

TN mills seek partnership with cotton growing states

Spinning mills in Tamil Nadu are seeking stronger partnership with...

Textiles | On 24th Jul 2017

Irani terms GST as a ‘great step towards transparency’

Union textiles minister Smriti Irani has termed the Goods and...

Interviews View All

Headhonchos
Indian fashion industry

Cotton consumption will keep growing in the Indian fashion industry

Stefan Warnaar
Peak to Plateau

People are willing to pay for quality and performance

Shiladitya K Joshi
Truetzschler India Private Limited

India ITME provides a platform to interact with our stakeholders

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

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

July 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

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

Yes No

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

Yes No

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


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



X