Plan panel urges clarity on foreign investment in retailApril 2nd, 2008 - 11:43 pm ICT by admin
New Delhi, April 2 (IANS) The government should further clarify the vexed issue of allowing foreign investment in the retail trade, the Planning Commission said in a report Wednesday. Currently, India allows 51 percent foreign direct investment (FDI) in single-brand retail joint ventures and 100 percent in cash-and-carry wholesale trading. It has no provision of FDI in multi-brand retailing.
“Hundred percent equity is allowed for cash-and-carry wholesale trading but there is no dividing line between this activity and retail trading,” the report said.
“There is nothing to prevent the end use consumers to make wholesale purchases meant for their own consumption,” it added.
The report also highlighted the various ways in which FDI is allowed in India’s retail space - one such being the franchising model, which is allowed under the current law.
The foreign retail chains, which develop local supplies according to their standards, can also source the products from India, it argued.
“These arguments have not been enough to convince the opponents of FDI in retail and there is lack of consensus on the issue in the ruling coalition,” it said.
Permitting FDI in multi-brand retailing has been a major contentious issue with the government as it has faced widespread opposition on the issue from both large and small traders, farmers and hawkers.
Global retail major Wal-Mart has already announced joint ventures with Bharti Retail for cash-and-carry wholesale retail, while French retailer Carrefour is in final talks with its India partner to roll out its operations.
- Finance ministry okays FDI in multi-brand retail - Nov 17, 2011
- French retailer Carrefour opens first wholesale store in India - Dec 30, 2010
- FDI in multi-brand retail will help curb inflation: Basu - May 27, 2011
- 'Big-ticket reforms can alter perception of policy paralysis' - Nov 20, 2011
- Top retailers seek 51 percent FDI in multi-brand retail - Aug 12, 2010
- Government to talk to states on FDI in multi-brand retail - Oct 27, 2010
- India opens doors to global retail chains (Roundup) - Nov 24, 2011
- Foreign investment cap hike likely in single brand retail: Anand Sharma - Oct 31, 2011
- Battle ahead for government in allowing foreign retailers - Aug 29, 2010
- Court notice to Bharti Walmart - Jul 11, 2012
- Fact sheet on India's retail trade industry - Nov 24, 2011
- Government for FDI in multi-brand retail, invites feedback - Jul 06, 2010
- Government looking at FDI in multi-brand retail: Sharma - Apr 27, 2010
- Wal-Mart to target 35,000 Indian farmers for agri-business supply chain by 2015 - Oct 26, 2010
- 'FDI will help modernise retail sector, curb inflation' - Jul 23, 2011
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