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Govt May Consider 100 Percentage FDI in Single Brand Retail

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The government is considering opening fully its single-brand retail sector to foreign direct investmentsa possible boon to the government’s reform programme which has appeared on the backburner. India currently allows 51% foreign direct investment ( FDI) in single-brand retail and 100% in wholesale operations. The government has considered allowing foreign firms such as global retail giant Wal-Mart to invest in supermarkets, but lack of political consensus and concerns of the small-shop owners have so far prevented the move.
Key economic policy changes, from tax reform to lifting investment caps in the banking and insurance sectors , are seen as crucial to maintaining the momentum of one of the world’s fastest growing economies. The industry secretary had last week dismissed the talk that supermarket reform was on the backburner, saying that it was moving “very fast” although fears of job losses in the unorganized retail needed to be addressed. Foreign retailers such as Wal-Mart , Carrefour SA, Tesco Plc and Metro AG see India’s 1.2 billion population as one of the world’s last largely untapped markets.
Source: NIMMA BENGALURU

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