'FDI liberalisation in multi-brand retail under consideration'

NEW DELHI: The government today informed Parliament that further liberalisation of foreign direct investment ( FDI) policy in multi-brand retail is under its consideration.

"The further liberalisation of this policy has been under consideration of the government," Minister of State for Commerce and Industry Jyotiraditya Scindia said in a written reply in the Rajya Sabha.

He was asked whether the government has decided to introduce a new policy on FDI in the multi-brand retail sector.

The existing policy allows 51 per cent FDI in single brand retail and 100 per cent in cash-and-carry stores, which cater only to bulk buyers and traders.

He said an inter-ministerial committee is examining the comments received on a discussion paper by the Department of Industrial Policy and Promotion (DIPP), nodal agency for FDI related matters.

"The committee will examine and analyse the responses and provide necessary inputs for proposed policy action. Government has yet to take a final view," he added.

He said the possible strategy to protect interests of small traders in the unorganised sector and the likely impact on the capacity building of storage of foodgrains, fruits and vegetables would be taken into account.

Global giants like Walmart and Carrefour have shown keen interest to enter in the sector.

French major Carrefour has called for allowing 100 per cent FDI in multi-brand stores and said the move would ease inflationary pressures.

However, local traders body like Nav Mumbai Merchant's Chamber have said that there should be a blanket ban on the entry of Multi National companies (MNCs) and domestic corporate houses into retail trade in India.

In an another reply, Scindia said the government is not making changes in FDI norms in the realty sector.