The Modi government has reiterated that FDI up to 100% is permitted in single brand retail trading and no decision on FDI in multi-brand retail trading has been taken
The Indian government on Friday said it has not taken any decision on permitting foreign direct investment (FDI) in multi-brand retail trading.
Nirmala Sitharaman, minister for commerce and industry, in a written reply to the Lok Sabha, said, "As per the extant FDI policy, FDI up to 100% is permitted in single brand retail trading. No decision on FDI in multi-brand retail trading has been taken".
As per the current policy, 51% FDI is permitted in multi-brand retail trading. When the United Progressive Alliance (UPA)-led government announced the policy, the Bharatiya Janata Party (BJP) had strongly opposed.
Sitharaman, after assuming the office, had indicated that foreign players will not be allowed to open mega stores in the country, saying that FDI in multi-brand retail trade will adversely impact small traders and farmers.
There have been speculations however that the government would not roll back the policy and leave it to the states to implement it.
Till now, British retail major Tesco's plan has been approved by the previous government to enter the sector.
Replying to another question on FDI in e-commerce, the minister said that during April 2000 and April 2014, India has received $37.1 million FDI in the sector.
"As per extant FDI policy, FDI up to 100% under the automatic route is permitted in B2B e-commerce activities. The present policy does not permit retail trading in any form, by means of e-commerce, for companies with FDI engaged in the activity of single/ multi brand retail trading," she said.
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I listened to Mr. Jaitley on Defense and policy is same that with 49% raised from 29% foreign manufacturers should open factories in India and transfer technologies. What a dream when they have enjoyed 100% buying by India.
Let these firms come with their 100% investment and let them sell their shares to Indians in due course. Otherwise nation will always be dependent on foreign supplier as not much is devoted to R&D in Defence but 200 Crores for a statute which could have waited when nation starts flourishing.