Mumbai: India’s commerce and industry ministry is considering to propose 100% foreign direct investment in multi-brand retail but with stiff sourcing requirements, the Economic Times reported on Tuesday.
“We are preparing the paper that will be placed for public debate in some time,” the newspaper quoted an unidentified senior official in the Department of Industrial Policy and Promotion as saying.
At present India does not allow foreign investment in multi-brand retail, while up to 51% is allowed in single brand retail.
The discussion paper is expected to make it mandatory for multi-brand retailers to sell products at wholesale prices to small shopkeepers, giving them the benefit of scale on sourcing, the newspaper said.
Companies will also have to procure products domestically and help improve returns for farmers, it said.
A final decision on the proposal will be taken after deliberations with the consumer affairs ministry, the paper said.