Business Today

Govt stands firm, FDI in multi-brand retail comes into effect

Global giants like Walmart can now invest up to 51 per cent to open stores in 10 states and union territories, which have endorsed the Centre's decision to allow FDI in multi-brand retail.

twitter-logoPTI | September 21, 2012 | Updated 10:41 IST

Unfazed by opposition even from its own allies, government of India on Thursday went ahead implementing its decisions to allow FDI in multi-brand retail and liberalise foreign investment in aviation and broadcasting sectors.

On a day opposition parties enforced a nation-wide bandh in which allies SP and DMK participated, government came out with notifications implementing its reforms decisions taken last week.

While TMC, the second largest UPA constituent, is all set to withdraw its support and pull out its ministers on Friday , SP and DMK have also opposed these policies.

Under the notification relating to FDI in multi-brand retail, multinational companies can invest up to 51 per cent to open stores in 10 states and UTs which have so far agreed to implement the decision.

"51 per cent FDI in multi-brand retailing, in all products, will be permitted ...," a notification by the Department of Industrial Policy and Promotion (DIPP) said. It said the decision will take immediate effect.

The government also operationalised September 14 Cabinet decisions allow 49 per cent FDI by foreign airlines in the domestic carriers and relax sourcing norms for foreign retailers investing beyond 51 per cent in single-brand retail.

In the most controversial area of FDI in multi-brand, the DIPP said the State Governments and UTs would be free to take their own decisions.

"Therefore, retail sales outlets may be set up in those States/UTs which have agreed, or agree in future, to allow FDI in MBRT (multi-brand retail trading) under this policy."

Minimum amount to be brought in by the foreign investor would be $100 million and outlets may be set up only in cities with a population of more than 10 lakh.

  • Print

A    A   A