'No revisiting on FDI in multi-brand retail decision'

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SME Times News Bureau | 28 Jul, 2012
The government has cleared that there were no question of "revisiting" the decision of allowing foreign direct investment (FDI) in multi-brand retail, taken on last November.

The Union Minister of Commerce, Industry and Textiles Anand Sharma, in a meeting with George Osborne MP, Chancellor of the Exchequer, UK, said, "we are very clear that there is no revisiting on multi-brand retail. Government is trying to build a wider political consensus after which notification will be issued."

In November last year, the cabinet had taken a decision to allow up to 51 percent foreign direct investment in multi-brand retail. But the move has been kept in abeyance due to protests from opposition as well as some of the allies of the ruling United Progressive Alliance (UPA) government, especially Mamata Banerjee-led Trinamool Congress.

Indian as well as global corporations and governments of several countries, especially the US and European nations, have been pressing for opening the retail sector.

During the meeting, Osborne asked Indian government to be "more ambitious in retail liberalisation".

US Ambassador to India Nancy J Powell Friday urged Indian government to open up retail sector saying it would help boost growth.

"For India to return to faster growth, new policies and economic reforms need to be put in place by the government in areas such as opening multi-brand retail up to foreign direct investment," Powell said at an event organised by Indo-American Chamber of Commerce in Varanasi, Uttar Pradesh.

Sharma and George Osborne also jointly addressed CEOs from India and United Kingdom where Osborne praised India's contribution to the UK economy.

He also assured Sharma that UK will continue to provide an open investment climate. Osborne asked Indian government to be more ambitious in retail liberalisation. On India-EU deal, Osborne said that UK remains a strong advocate of the deal and will provide all help for an early conclusion of the deal.

Osborne also urged an early and amicable solution to the Vodafone issue.

On Doha round, Sharma said that whatever is available on the table represents a fine balance, and that collapse of the Doha Development Round will be catastrophic for the Least Developed Countries (LDCs). "We must keep on striving for a balanced outcome," said Sharma.