World Economic Forum: FDI in retail is cast in stone, says Anand Sharma

NEW DELHI: Commerce and industry minister Anand Sharma has assured investors that the decision to allow foreign investments in the retail sector was irreversible and a number of big proposals, including Swedish furniture major Ikea's, would soon be approved.

"The legislation is cast in stone. It cannot be disturbed," Sharma said at the World Economic Forum on India on Thursday.

The minister said the government will soon clear the proposal of Swedish home furnishing major Ikea, which has sought approval to invest Rs 10,500 crore to set up single- brand retail stores in the country.

"Few big proposals are in the pipeline, like Ikea. They will be approved. It is just a matter of days when the meeting will take place. They will all go through," Sharma said.

The Department of Industrial Policy and Promotion is scrutinizing Ikea's proposal to ensure that it meets all policy parameters and is hopeful that it would be able to approve it in time for placing it before the Foreign Investment Promotion Board (FIPB) on November 20.

After FIPB's clearance, the proposal will have to be approved by the Cabinet Committee on Economic Affairs (CCEA) as the board can clear investment applications worth up to Rs 1,200 crore only.

The minister was optimistic that FDI proposals in multi-brand retail would also come soon. He said now that the government has allowed FDI in multi-brand retail, global retailers which were present in the wholesale stores should look at opening retail stores in the country.

"Reform is a gradual process, we have taken several steps. We have allowed FDI in civil aviation and power exchange. Now there are huge opportunities which foreign companies should avail," he said.

The government in January notified its decision to raise the foreign direct investment limit in single-brand retail from 51% to 100%. Later it also allowed up to 51% FDI in multi-brand retail.