NEW DELHI: Taking a “middle path” on allowing foreign direct investment in the retail sector, the Congress has asked the Union government to first put proper safeguards in place so that common retailers are not affected.
Referring to the letter written by party president Sonia Gandhi to prime minister Manmohan Singh, Congress spokesperson Abhishek Singhvi said the party is not in favour of “extreme positions” on the issue.
“It (the letter) should not not be seen as two extremes — of banning FDI or allowing FDI without any safeguards,” Singhvi told reporters at the daily media briefing at the party headquarters.
Overseas investment in India’s retail industry is limited to single-brand merchants, preventing international chains from buying stakes in local companies or setting up their own stores.
In November, Wal-Mart agreed to form an equal wholesaling venture with India’s Bharti Group that will connect suppliers and retailers, with the Indian company owning the stores.