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FDI in multi-brand retail a step closer to reality

Foreign direct investment in retail within India is likely to become a reality soon, with global retailers like Wal-Mart and Tesco setting up shops here.



Zeebiz Bureau

New Delhi: Foreign direct investment in retail within
India is likely to become a reality soon, with global retailers like Wal-Mart
and Tesco setting up shops here.

The development comes after a panel of secretaries approved
the framework for allowing global retail chains to enter India on their own.

The Committee of Secretaries on Friday recommended allowing 51 percent FDI in
the multi-brand retail, with a rider that the foreign investment should be at
least USD 100 million.

     

"The Committee of Secretaries (CoS), which met under the Cabinet Secretary
Ajit Kumar Seth, also decided that the overseas mega retail chains will have to
pump in at least half of their investment in the back-end supply chain," a
source said.

     

The politically sensitive issue will soon be taken to the Cabinet, the source
added.

 

Several global retailers are waiting in the wings for a full-scale entry into
India's multi-brand retail segment. India's retail sector estimated at about
USD 590 billion, according to an Icrier report, is dominated by mom & pop
stores.

     

India has already allowed FDI of up to 51 percent in the single brand retail
and 100 percent in cash and carry format of the business.

     

"This is probably the last meeting of CoS on the issue," the source
added.

(With PTI inputs)

From Zee News

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