Indian government’s strategy for fdi in multi brand retailing after presidential election
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The Indian government plans to revive an order allowing foreign investors to own majority stakes in Indian supermarkets and department stores after the upcoming presidential election. This would end uncertainty around a reform initiative that has become symbolic of policy paralysis. The commerce minister has been consulting with state governments and stakeholders like traders and farmers to build consensus. The government will argue that states willing to welcome foreign retailers like Walmart and Tesco should not be prevented from doing so just because other states oppose it. Chief ministers of states where Congress is in power have expressed interest in foreign investment in multi-brand retail.
Indian government’s strategy for fdi in multi brand retailing after presidential election
- 1. http://www.fibre2fashion.com/industry-article/42/4198/prospects-for-fdi1.asp Indian government’s strategy for FDI in Multi brand retailing after presidential election FDI in multi-brand retail may get rolling after presidential election The government is likely to revive an order allowing foreign investors to own majority stakes in Indian supermarkets and department stores after the election of a new President later this month, ending uncertainty over a reform initiative that has become a talisman for policy paralysis. The move is being spearheaded by Anand Sharma, the minister in charge of commerce and industry, who has been sounding out state governments and other stakeholders like traders and farmers to reach a consensus. The Cabinet had allowed foreign investors to own 51% in Indian supermarkets last November, but had to keep the move in abeyance after protests from its ally, Mamata Banerjee-led Trinamool Congress, and some Opposition parties. The Union government will justify its decision on the ground that states willing to welcome global retail chains such as Walmart and Tesco should not be prevented from doing so because others are opposed, according to ministers familiar with the government's strategy. The chief ministers of states where the ruling Congress is in control, such as Assam, Haryana, Maharashtra and Delhi, have expressed eagerness to welcome FDI in multi-brand retail as supermarkets are often referred to. Some Opposition-led states like Punjab, Odisha and Uttar Pradesh may also not be averse. Learn more about Indian government’s strategy for FDI in Multi brand retailing after presidential election at Fibre2fashion