Govt to allow FDI in retail gradually

The government would further open up the retail sector for foreign direct investment in phases, a senior official said here.

"FDI in retail would be gradual and calibrated," Ajay Dua, secretary in the department of industrial policy and promotion said at a seminar here.

Dua said the government was fully aware of the concerns of the country's traditional shopkeepers. The government was not yet ready to assess the impact, he said, adding the issue was now between unorganised and organised players.

He said the government had received applications from three overseas firms for single brand retailing in India. The application of Nike had been cleared and that of LVMH and Lladro were pending with the government.

Kishore Biyani, head of Future group, said that retailers were targetting Tier II cities in the country.

Biyani said 97 per cent of the Indian retail scenario was unorganised and added that it was a challenge for retailers to tap the mass market.