Business   

FDI in multibrand retailing ruled out

— PHOTO: Ramesh Sharma

POSITIVE TREND: Union Minister for Commerce and Industry Anand Sharma (right) with Secretary DOPP Ajay Shankar at the Economic Editors’ Conference in New Delhi on Wednesday.

NEW DELHI: Union Commerce and Industry Minister Anand Sharma on Wednesday said there was no plan to effect any further changes or liberalise foreign direct investment (FDI) norms and ruled out FDI into the multi-brand retail sector retaining the present position of single brand retail.

Speaking at the Economic Editors Conference here, Mr. Sharma said the FDI policy was working fine. “I am saying so because it is clearly reflected in how foreign investors are looking at it. We had gone in consciously for rationalisation by defining ownership and control and that has helped. We keep on evolving but I do not see any further need for liberalisation,” he said. About the FDI in lucrative sectors, Mr. Sharma said single brand retail was already allowed. “Up to the wholesale point it is all right. In back-end chain, it is important to have foreign equity participation.

In the single brand retail, they can also do value addition. That’s what we want to encourage. As for the front-end, the country is not ready as yet because it is a vast social security net that we have. Those who have come in the single brand product are doing very well. The policy is very clear and there cannot be any diversion of any sector which is as of now not open. It would mean violation,” he said.

On the investment side, he said it was a measure of confidence that foreign investors had demonstrated in the Indian economy that the FDI had shown a positive trend this year and so have the flows from foreign institutional investors.

“In the first six months of the current financial year, we received FDI inflows of $15.3 billion and the cumulative FDI inflows have crossed the $120-billion mark. Last year, we received of $35 billion,” he said.

Printer friendly page  
Send this article to Friends by E-Mail

Stories in this Section

Montek Singh pitches for financial reforms
FDI in multibrand retailing ruled out
TVS Shriram to take stake in Landmark
Crude oil output to touch 36.7 m tonnes this fiscal
Sensex snaps six-day losses
LG focusses on education segment
Gold touches new high
Package for plantation industry likely
SKF India opens global testing centre
Farm sector will grow by 1.5 p.c., says Pawar
New bikes from Royal Enfield
PNB sets up joint venture with FIM Bank of Malta
M&M plans to launch motorcycles
Exchange Rates
Bullion Rates
E.I.D.–Parry India Q2 profit at Rs. 40 crore
IKEA set to expand sourcing base in India
Orchid Chemicals reduces losses in Q2
Elgi Equipments recommends interim
Hinduja Foundries profit up

Copyright © 2009, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu