Govt on multi-brand FDI

The government on Friday said it would reach out to domestic retailers later this month in its bid to evolve a consensus on allowing foreign direct investment in multi-brand retail.

“We had consulted food processing and small scale industry. Next round will be with the consumers and farmers. This will be followed by retailers. It is all slated...,” Secretary in the department of industrial policy and promotion P K Chaudhery told reporters on the sidelines of a Cement Manufacturers’ Association’s meeting here.

Secretary General of the Confederation of All India Traders (CAIT) Praveen Khandelwal said he had not received any communication from the DIPP so far. Along with some political parties, the traders have stoutly opposed the move to open the domestic retail market to international chains.

But, despite a setback on the politically-sensitive issue, the government has renewed its efforts to forge a consensus on opening the doors to global retailers in multi-brand retail, estimated to be about $550 billion market.

Asked when the renewed consultations would be completed, Chaudhery said, “Probably, by this month(end)”. Following opposition from several political parties, the government was forced to put on hold its November 24 decision for allowing FDI in multi-brand retail. Liberalisation in the sector would have paved way for global retailers like Walmart, Tesco and Carrefour to open outlets in India.