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Cabinet likely to approve FDI in multi-brand retail on Thursday

Cabinet likely to approve FDI in multi-brand retail on Thursday
PTI
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First Published: Wed, Nov 23 2011. 05 28 PM IST

Updated: Wed, Nov 23 2011. 05 28 PM IST
New Delhi: The government is likely to approve 51% FDI in multi-brand retail tomorrow, a decision that will allow global mega chains like Walmart, Tesco and Carrefour to open outlets in India.
Increasing the foreign investment (FDI) ceiling to 100% from the present 51% in single-brand retail is also on the agenda of the the Union Cabinet meeting scheduled for Thursday, sources said.
Most of the ministries, including the finance and the textiles, are in favour of the industry ministry’s proposal to open the politically-sensitive sector to foreign players and the Cabinet will take a final call, they said.
Earlier, a panel headed by cabinet secretary Ajit Kumar Seth had recommended 51% FDI in multi-brand retail with certain riders, like minimum investment of $100 million and local sourcing.
The decision on the issue is pending for over two-years as Opposition parties are against foreign investment in this sector. The $600 billion segment is dominated by small kirana (mom & pop) shops.
Opposition have expressed concerns that allowing majors global retailers would lead to unemployment among the unorganised sector.
The government had opened the single-brand retail for FDI way back in 2006 and ever since 60 foreign players have entered the country in joint venture with local firms.
Several global retailers are waiting in the wings to enter India’s multi-brand retail segment.
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First Published: Wed, Nov 23 2011. 05 28 PM IST
More Topics: Retail industry | FDI | Cabinet | Teso | Walmart |