No decision yet on FDI in multi-brand retail: Commerce Minister
Despite having series of discussions and consultations with stakeholders, the government is yet to take any decision on Foreign Direct Investment (FDI) in multi-brand retail. “As regards Foreign Direct Investment (FDI) policy in multi-brand retail trading, no decision has been taken by the government,” Commerce Minister Nirmala Sitharaman told Rajya Sabha on Wednesday. The current foreign investment policy allows up to 51% FDI in multi-brand retail, but the government seems to be not so keen on increasing the limit for foreign investments in the sector. Changes are made in the policy after having intensive consultation with stakeholders including concerned ministries andindustry bodies, the Minister said, adding, “FDI up to 100% is allowed on the automatic route in most sectors/activities subject to applicable laws/ regulations, security and other conditionalities.” The entire range of rail infrastructure was opened to 100% FDI under the automatic route and sectoral cap was raised to 49% in defence. The FDI policy in the construction development sector was also reviewed by creating easy exit norms, while insurance and pension sectors have been allowed for 49% FDI, she said. The FDI policy is being reviewed based on the ongoing processes, and significant changes are made from time to time, to ensure that India remains “increasingly attractive and investor-friendly investment destination”, the Minister added. The government has also set up an online digital platform (e-Nivesh), which seeks to monitor the processing of 88 different types clearances granted by various central government ministries/departments. The exact number of clearances required by investor depends on a number of factors including investment in plant and machinery, member and class of employees, and the sector concerned, the Minister said.
August 13, 2015 | 4:05pm IST.
to success.