No FDI in multi-brand retail, e-commerce: Minister

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SME Times News Bureau | 09 Sep, 2014
The government will neither allow foreign direct investment (FDI) in multi-brand retail nor in e-commerce, Commerce and Industry Minister Nirmala Sitharaman said Monday.

"We are clear that FDI will not be allowed in multi-brand retail trade. We shall not entertain FDI in MBRT. There is no ambiguity. There is no confusion on this," Sitharaman said, addressing a press conference in New Delhi on the initiatives by her ministry in the 100 days of the NDA regime.

Pointing to the prevailing impression that e-commerce is a way to bring in FDI into multi-brand retail through the "back door", Sitaraman said, "We do not allow FDI in e-commerce as well, as the policy is the same as that for multi-brand retail."

Sitharaman said the Bharatiya Janata Party (BJP) has clearly articulated its position on foreign equity in multi-brand retail and won the elections on the basis of the manifesto.

"There is no conflict in our minds. We are clear that we do want FDI in multi-brand retail. It is just that we do not see there is a need for us to come out with any notification specifying this as we are not sitting on applications," Sitharaman said.

The previous UPA government had opened the multi-brand retail sector for foreign investment and allowed up to 51 percent FDI in the sector, but the BJP does not intend to scrap this policy.