No plan to ease FDI norms in retail sector: Govt

NEW DELHI: The government on Thursday said it has no plans to relax the existing foreign direct investment rules in the retail sector.

"At the moment there is no plan to ease FDI norms in retail," Commerce and Industry Minister Kamal Nath told reporters here.

Currently, FDI in retail has been allowed up to 51 per cent in single brands but not allowed in multi-brands.

Though the economic think tank Icrier opines differently the government ruled out big retailers affecting smaller ones in the long run.

In its report submitted to the Department of Industrial Policy and Promotion (DIPP), Icrier had stated that the big retail chains initially affected small grocery shops but the impact gradually wore out.

The study recommended, among other measures, a nationwide uniform licensing policy to facilitate "modern retailing" in the country.

The report has said that with the economy growing by eight per cent, the retail sector would show a growth of 13 per cent.