Retail FDI may come with stiff conditions

Foreign direct investment (FDI) in the multi-brand retail may be allowed subject to a stiff condition that global retailers will have to invest heavily in the back-end infrastructure like and cold storage.

The Department of Industrial Policy and Promotion (DIPP) will soon come up with concept papers on relaxing norms for in different sectors including multi-brand retail.

The paper on FDI in retail may include a provision that global retailers interested in opening multi-brand stores in the country will have to put in a significant part of their investment in the back-end infrastructure, a source in the know of the development said.

"We will put this in the discussion paper," the said, adding the discussion papers seeking comments from stakeholders are expected to be put in the public domain soon.

At present, FDI is not allowed in the multi-brand retail sector, which is dominated by the neighbourhood kirana stores and is a politically-sensitive topic. However, foreign players are permitted in wholesale trade as also single-brand, high-end retail.

Expressing concern over high food prices, Prime Minister had recently suggested changes in the retail FDI policy so as to narrow the gap between the consumer and farm gate prices. "We need greater competition and therefore need to take a firm view on opening up of the retail trade," the Prime Minister had said recently.

Since FDI is not permitted in retail, world's number one retailer WalMart has settled for cash-n-carry (wholesale) joint venture with the Bharti Group.

Under 5 per cent of the country's retail is in the organised space today, and a few homegrown players like Future Group, Reliance Retail, dominate the scene.

Besides, the government would also float draft proposals for liberalising FDI in defence and agriculture.

image
Business Standard
177 22
Business Standard

Retail FDI may come with stiff conditions

Press Trust of India  |  New Delhi 



Foreign direct investment (FDI) in the multi-brand retail may be allowed subject to a stiff condition that global retailers will have to invest heavily in the back-end infrastructure like and cold storage.

The Department of Industrial Policy and Promotion (DIPP) will soon come up with concept papers on relaxing norms for in different sectors including multi-brand retail.

The paper on FDI in retail may include a provision that global retailers interested in opening multi-brand stores in the country will have to put in a significant part of their investment in the back-end infrastructure, a source in the know of the development said.

"We will put this in the discussion paper," the said, adding the discussion papers seeking comments from stakeholders are expected to be put in the public domain soon.

At present, FDI is not allowed in the multi-brand retail sector, which is dominated by the neighbourhood kirana stores and is a politically-sensitive topic. However, foreign players are permitted in wholesale trade as also single-brand, high-end retail.

Expressing concern over high food prices, Prime Minister had recently suggested changes in the retail FDI policy so as to narrow the gap between the consumer and farm gate prices. "We need greater competition and therefore need to take a firm view on opening up of the retail trade," the Prime Minister had said recently.

Since FDI is not permitted in retail, world's number one retailer WalMart has settled for cash-n-carry (wholesale) joint venture with the Bharti Group.

Under 5 per cent of the country's retail is in the organised space today, and a few homegrown players like Future Group, Reliance Retail, dominate the scene.

Besides, the government would also float draft proposals for liberalising FDI in defence and agriculture.

RECOMMENDED FOR YOU

Retail FDI may come with stiff conditions

Foreign direct investment (FDI) in the multi-brand retail may be allowed subject to a stiff condition that global retailers will have to invest heavily in the back-end infrastructure like warehousing and cold storage.

Foreign direct investment (FDI) in the multi-brand retail may be allowed subject to a stiff condition that global retailers will have to invest heavily in the back-end infrastructure like and cold storage.

The Department of Industrial Policy and Promotion (DIPP) will soon come up with concept papers on relaxing norms for in different sectors including multi-brand retail.

The paper on FDI in retail may include a provision that global retailers interested in opening multi-brand stores in the country will have to put in a significant part of their investment in the back-end infrastructure, a source in the know of the development said.

"We will put this in the discussion paper," the said, adding the discussion papers seeking comments from stakeholders are expected to be put in the public domain soon.

At present, FDI is not allowed in the multi-brand retail sector, which is dominated by the neighbourhood kirana stores and is a politically-sensitive topic. However, foreign players are permitted in wholesale trade as also single-brand, high-end retail.

Expressing concern over high food prices, Prime Minister had recently suggested changes in the retail FDI policy so as to narrow the gap between the consumer and farm gate prices. "We need greater competition and therefore need to take a firm view on opening up of the retail trade," the Prime Minister had said recently.

Since FDI is not permitted in retail, world's number one retailer WalMart has settled for cash-n-carry (wholesale) joint venture with the Bharti Group.

Under 5 per cent of the country's retail is in the organised space today, and a few homegrown players like Future Group, Reliance Retail, dominate the scene.

Besides, the government would also float draft proposals for liberalising FDI in defence and agriculture.

image
Business Standard
177 22
Widgets Magazine

More News

Widgets Magazine

Widgets Magazine

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard