Govt may fast-track decision on FDI in retail

Government today said it would take an early decision on opening up multi-brand retail sector for FDI after it formally gets minutes of the recommendations of top secretaries on the issue.

"Policy formulation is a careful calibrated exercise. Once recommendations formally reach my table, we will take early and appropriate policy decision," Commerce and Industry Minister Anand Sharma said in Rajya Sabha.

Replying to concerns raised by members on issues like job losses following opening up of the sector to foreign retailers, Sharma said the decision will be in "supreme" national interest and create millions of jobs across the country.

He said a group of secretaries headed by Cabinet Secretary Ajit Kumar Seth last month made specific recommendations which are in interest of all stakeholders, including farmers.

He said the secretaries have recommended that at least 50% of the investment and jobs go to rural areas and the entities with FDI should source at least 30% of their requirements from the MSME sector. They have recommended that the minimum investments should be $100 million.

India allows 51% FDI in single brand retail and 100% in cash and carry format of the business.

In July 2010, the Department of Industrial Policy and Promotion (DIPP) floated a discussion paper on opening of the politically sensitive multi-brand retail.