India likely to allow FDI in multi-brand retail trade
29 Oct 2010
Government authorities in India are veering round to the view that the country is now ripe for foreign equity participation in multi-brand retail business.
Indian authorities, under pressure from domestic retail trade as also due to political compulsions, currently allow foreign equity participation only in single brand retail, and that too only up to 51 per cent.
Agriculture minister Sharad Pawar recently told the Economic Editors' Conference in New Delhi that he was in favour of allowing foreign direct investment in multi-brand retail sector, as that would help both farmers and consumers. He, however, also said the government cannot overlook the interests of lakhs of small kirana shops.
He said the centre would also tap into states to narrow the political divide over opening up multi-brand retail to foreign direct investment.
"It will give good prices to farmers and consumers will also get wider choices," he told the conference.
Planning Commission deputy chairman Montek Singh Ahluwalia also spoke in favour of multi-brand retail. He said the commission had long been in favour of retail FDI.
