Cabinet to decide on 51 per cent FDI in multi-brand retail tomorrow
23 Nov 2011
The union cabinet is expected to decide on allowing 51 per cent foreign direct investment (FDI) in multi-brand retail trade and 100 per cent in single brand retail at its meeting tomorrow.
A decision on foreign investment in retail trade will end years of uncertainty and allow multinationals like Wal-Mart, Tesco and Carrefour to set up retail chains in India.
Reports quoting an official note circulated among the various ministries and departments, said the issues of foreign direct investment in multi-brand retail and further liberalisation of policy in single-brand retail will be taken up for clearance on Thursday.
The policy shift is part of the measures the government planned to expose Indian industry and retail business to global competition.
Reports, however, said the draft policy attaches several conditions to liberalisation of the foreign investment.
Currently, foreign direct investment in single brand retail trade is capped at 51 per cent. The cabinet meeting will also consider increasing this ceiling from 51 per cent to 100 per cent.