Foreign investment cap hike likely in single brand retail: Anand Sharma

October 31st, 2011 - 8:11 pm ICT by IANS  

New Delhi, Oct 31 (IANS) The government is considering raising the foreign investment limit in single-brand retail, Commerce and Industry Minister Anand Sharma said Monday.

“Currently we have 51 percent FDI (foreign direct investment) limit in single brand retail,” Sharma said while addressing an Indo-Italian business forum organised by the Federation of Indian Chambers of Commerce and Industry (FICCI) here.

“We are seriously considering how to raise it to a higher level,” said the minister.

Sharma, however, declined to elaborate when asked about details of the proposal on the sidelines of the event.

The government has been considering opening up multi-brand retail to foreign investment but has not gone ahead with it yet considering the various political ramifications of such a move.

Currently foreign firms are not allowed in multi-brand retail. However, they are allowed to set up wholly-owned subsidiaries in cash-and-carry trade.

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