The government on Wednesday said it will take an early decision on opening up multi-brand retail sector for foreign direct investment (FDI) after it formally gets minutes of the recommendations of top secretaries on the issue.
"(Policy formulation) is a careful calibrated exercise...Once recommendations formally reach my table, we will take early and appropriate policy decision," Commerce and Industry Minister Anand Sharma said in Rajya Sabha.
India Inc welcomes FDI proposal in retail
Replying to concerns raised by members on issues like job losses following opening up of the sector to foreign retailers, Sharma said the decision will be in "supreme" national interest and create millions of jobs across the country.
He said a group of secretaries headed by Cabinet Secretary Ajit Kumar Seth last month made specific recommendations which are in interest of all stakeholders, including farmers.
Panel recommends 51% FDI in retail
Sharma said the secretaries have recommended that at least 50 per cent of the investment and jobs go to rural areas and the entities with FDI should source at least 30 per cent of their requirements from the MSME sector. They have recommended that the minimum investments should be $100 million.
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India allows 51 per cent FDI in single-brand retail and 100 per cent in cash-and-carry format of the business.
In July 2010, the Department of Industrial Policy and Promotion (DIPP) floated a discussion paper on opening of the politically sensitive multi-brand retail.