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CAIT opposes 100% FDI in single brand retail via automatic

Press Trust of India  |  Mumbai 

A trade body today strongly opposed the Centre's decision to allow 100 per cent foreign direct investment (FDI) in single through the automatic route.

The Confederation of All Traders (CAIT) said the move will facilitate easy entry of MNCs (multi-national companies) in the

At present, up to 49 per cent is allowed under automatic route but any investment beyond the limit required approval.

The approval through automatic route is aimed at further quickening the clearance process and many foreign players may now enter the Indian market this advantage of this.

In a statement here, CAIT, said "100 per cent in single through the automatic route will facilitate easy entry of MNCs in the and also violate the poll promise of the "

Terming it as a "serious matter for small businesses", the trade body claims the move will hamper the welfare, upgradation and modernisation of existing

The trade association said this was a "brutal move" on the part of the and such a step would render a large number of people jobless.

Earlier, foreign investments above 49 per cent required the government's approval along with subject to certain condition like mandatory local sourcing from micro and small and medium businesses (MSMEs).

The government, on the other hand, has pushed the proposal with a view to provide an investor-friendly climate to foreign players and in turn attract more to boost economic growth, which it expects will create jobs.

After 100 per cent in single was allowed in 2014, many global players like and have entered the Indian market.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, January 10 2018. 14:30 IST