Minimal support for FDI in multi-brand retail | SupportBiz

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Minimal support for FDI in multi-brand retail

 
Only four states and union territories have formally supported allowing foreign direct investment (FDI) in multi-brand retail, signifying little backing for the Indian government's move that would facilitate the entry of global chains like Walmart into the country.

"Till date, written communications indicating support for FDI in multi-brand retail trade have been received from the governments of NCT of Delhi, Manipur, and from the union territory of Daman and Diu, and Dadra and Nagar Haveli," Minister of State for Commerce and Industry Jyotiraditya Scindia said in a written reply in the Rajya Sabha on August 8.

In June, the Department of Industrial Policy and Promotion (DIPP) had written to all states and union territories seeking their support for allowing overseas investment in multi-brand retail.

In November 2011, the Union Cabinet had decided to allow upto 51 percent foreign direct investment in multi-brand retail. However, the move has been stymied by protests from opposition as well as some of the allies of the ruling United Progressive Alliance (UPA) and the Kerrala's Congress government.

To garner more support for the controversial issue, Commerce and Industry Minister Anand Sharma has written letters to several state governments, including Punjab, Haryana and Odisha.