Govt Approves 51per Cent FDI In Multi Brand N 100 Percent In Single Brand

Government on 25^th Nov informed Parliament that it has allowed 51 per cent FDI in multi-brand retail.

In a statement, Commerce and Industry Minister Anand Sharma said both in the Lok Sabha and Rajya Sabha that government has allowed 51 percent foreign direct investment in multi brand retail.

It has also decided to allow 100 percent investment in the single brand retail.

Allowing FDI in multi-brand retail, will be subject to riders including a minimum investment of 5,200 crore rupees.

Addressing a press Conference after tabling the statement in the two houses the Commerce Minister said at least 50 per cent of the investment would be in the back-end infrastructure like cold storage, packaging and other logistics.

He said that the global retail chains will have to source at least 30 per cent of their requirements from small industries.

Besides, they will be allowed only in cities with one million people. He elaborated while allowing 100 per cent FDI in single brand retail, the products sold should be of a single brand and should be sold under the same brand in one or more countries, other than India.

The single brand product retailing would cover only products, which are branded during manufacturing.

The decision also made it mandatory that the owner of the brand will be a foreign investor. 

The Minister said that the guide lines for implementing the new policy will be in place shortly and some proposals by global retail chains are expected soon.

He dismissed the criticism by the opposition parties and asserted that the decision will create 10 million jobs in three years.

The Minister said that the decision is beneficial for the farmers providing them better prices, reduce wastage of food grains and provide articles on cheaper prices.

He elaborated that foreign investment promotion board will approve the investment proposals and it is for the state governments to allow setting up of such stores in the cities.

He made it clear that the decision to open single brand retail was taken after ascertaining the views of all the stake holders since July last year. He added that a committee of secretaries headed by the cabinet secretary was set up to look into the whole issue who came with the decision.

He said that the cabinet decision is based on the recommendation of the committee of secretaries.