Indian govt to address concerns of global retailers on FDI

28 Jun '13

2 min read

The Government of India would at the earliest address the concerns raised by global retailers, especially on investment and sourcing issues in connection with the country’s foreign direct investment (FDI) Policy for multi-brand retail trading.

Speaking to reporters after a Round Table meeting with the CEOs of leading international and domestic retail chains, India’s Commerce and Industry Minister Anand Sharma said retailers have sought a change in rules for FDI in multi-brand retail, and make the rules same as those applicable for 100 percent FDI in single-brand retail.

Mr. Sharma said the Government would soon address the concerns raised by the investors and bring more clarity in its FDI Policy for multi-brand retail.

He assured the potential investors that the Government will take an early and appropriate view and issue necessary guidelines.

The Round Table was called by the Minister to seek views of the global and domestic retailers on issues related to implementation of the FDI Policy and address their concerns, if any.

At the conference, the retailers requested the Government to modify the 50 percent investment in back-end infrastructure norm to make it applicable only on the first tranche of investment, instead of the entire investment.

Retailers also raised the issue of 30 percent sourcing clause and urged the Government to make it ‘preferable’, instead of ‘mandatory’, as it was not possible to buy everything from the SMEs, Bharti Enterprises vice-chairman Rajan Bharti Mittal told media.

The retailers said it was necessary that the Government quickly issues clarifications in order to generate greater interest among international investors to invest in the country.

CEOs of Tesco India, Carrefour, Aditya Birla Retail, Landmark and Reliance Retail were among those who participated in the investors’ conference with the Minister.

Fibre2fashion News Desk - India

More Apparel/Garments News - India...