Finance ministry okays FDI in multi-brand retailNovember 17th, 2011 - 9:21 pm ICT by IANS
New Delhi, Nov 17 (IANS) The finance ministry has approved the draft cabinet note that seeks to allow up to 51 percent foreign direct investment (FDI) in multi-brand retail, sources said Thursday.
The ministry has also approved the proposal to enhance the limit of foreign equity investment in single-brand retail to up to 100 percent from the existing 51 percent, an official in the North Block said.
India currently allows up to 51 percent foreign direct investments in single-brand retail and 100 percent foreign direct investment in cash and carry wholesale trade. No overseas investment is allowed in multi-brand retail.
In July this year, a committee of secretaries headed by Cabinet Secretary Ajit Kumar Seth had given in-principle approval for allowing up to 51 percent FDI in multi-brand retail and also removing the limit on single-brand retail.
The committee has suggested to put a minimum FDI cap of $100 million for foreign equity investment in multi-brand retail.
Subsequently, the department of industrial policy and promotion (DIPP) circulated a draft cabinet note to seek inter-ministerial views on the issue.
The government decision to allow FDI in multi-brand retail will pave the way for the global retailers like Wal-Mart, Carrefour and Tesco to enter the India’s multi-brand retail market.
- Amit Mitra shifts stand on FDI in retail - Nov 28, 2011
- 'FDI will help modernise retail sector, curb inflation' - Jul 23, 2011
- FDI will help create 1 crore new jobs in retail: Government - Sep 21, 2012
- 30 percent sourcing from Indian SMEs, says government - Nov 28, 2011
- 'Decision on foreign equity in multi-brand retail in six months' - Jun 03, 2011
- India allows FDI in multi-brand retail - Sep 14, 2012
- States have prerogative not to allow FDI in multi-brand retail: Government - Sep 18, 2012
- 'Big-ticket reforms can alter perception of policy paralysis' - Nov 20, 2011
- FDI in multi-brand retail: German envoy for India resolving issue - Dec 08, 2011
- FDI in multi-brand retail will help curb inflation: Basu - May 27, 2011
- India opens doors to global retail chains (Roundup) - Nov 24, 2011
- Parliament again shuts down over FDI - Nov 30, 2011
- Anand Sharma writes to parties clarifying FDI stance - Nov 28, 2011
- Recall of retail FDI regressive, disappointing: India Inc (Roundup) - Dec 07, 2011
- FDI will revolutionise retail sector: Government - Nov 27, 2011
Tags: 100 million, ajit kumar, cabinet note, cabinet secretary, carrefour, dipp, equity investment, fdi, finance ministry, foreign direct investment, foreign direct investments, global retailers, government decision, overseas investment, retail market, retail sources, secretaries, tesco, wal mart, wholesale trade