Foreign investment norms for retail to stay: Kamal Nath (Lead)

February 12th, 2009 - 4:41 pm ICT by IANS  

New Delhi, Feb 12 (IANS) The government has rationalised the foreign investment norms as there is a tightening in the global markets, but the cap on such investments in single-brand retail would continue, Commerce Minister Kamal Nath said here Thursday.
“The government has rationalised calculation of FDI (foreign direct investment). Because of this, there will be further inflow of investment in India,” Kamal Nath told reporters on the sidelines of the India Carpet Expo.

The minister, who inaugurated the four-day exhibition here at Pragati Maidan,

however stated that the 49 percent cap on foreign investment in single-brand retail would continue and that there would be no change in sectoral limits. “That position will not change and will remain.”

Foreign investment in multi-brand retail is not allowed in India.

“I believe the government will do whatever is possible to prop the economy,” he said, while insisting it would ensure the new foreign investment norms are not misused.

Referring to the slowdown in the US and Europe, Kamal Nath asserted: “But we will be able to maintain a GDP growth at 7 percent.”

The carpet expo, organised by the Carpet Export Promotion Council (CEPC), was also attended by Minister for Textiles Shankersinh Vaghela, Commerce Secretary G.K. Pillai and Textile Secretary Rita Menon.

Buyers from the US, Britain, Germany, France and Australia are expected to visit the expo, said CEPC chairman Ashok Jain.

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