Montek calls for FDI in multi-brand retail
27 Oct 2010
Planning Commission deputy chairman Montek Singh Ahluwalia on Tuesday came out strongly in favour of allowing foreign direct investment (FDI) in multibrand retail in the country.
''Today the policy of the country allows modern retail formats. We are not opposed to that. Therefore, in my view, there is absolutely no reason why FDI (in multi-brand retail) should not be allowed,'' said Ahluwalia at an Economic Editors' Conference in New Delhi.
On fears that such a move would hit small kirana stores, he said, "I have no problem with that."
His remarks come ahead of US president Barack Obama's visit to India early next month,
Currently, 51 per cent FDI in single-brand retail is allowed, but none is allowed for multi-brand retail.
The Department of Industrial Policy and Promotion (DIPP) has floated a discussion paper exploring the possibilities of opening FDI in multi-brand retail. The Planning Commission, along with the agriculture ministry, has supported the proposal earlier as well.
