New Delhi: The Government is considering expanding the scope of foreign direct investment in the retail sector to sports goods and electronics, involving multiple brand sales. At present, only single brand sales are allowed.

A Cabinet note is being prepared, it is learnt, following discussions between Prime Minister Manmohan Singh and Commerce and Industry Minister Kamal Nath.

Mr. Nath said the aim was to focus on areas, which do not affect small and neighbourhood shops. Apart from sports goods and electronics, other areas being looked into include construction materials and stationery.

Official sources said the inclusion of high quality sports goods is being considered in the context of the coming Commonwealth Games here and the need to provide international quality sports equipment.

Even in the electronics sector, they said, the aim was to allow FDI in products at the upper end of the market.

The Industry Ministry was holding talks with the Consumer Affairs Ministry to ensure that the expansion did not affect farmers or traditional small retailers. Up to six potential areas could be opened, they said.

At present FDI up to 51 per cent is allowed in single brand retail. In wholesale cash-and-carry, up to 100 per cent FDI is allowed.

Foreign investment in the back-end retail activity, such as logistics, cold chain and technology is sought to be encouraged to benefit small retailers.

Wal-Mart, the world's biggest retailer, had recently tied up with the Bharti group for such back-end operations.

Till now the Foreign Investment Promotion Board has received 11 proposals and of them four had been cleared.

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