Govt clears 100% FDI in sin­gle-brand re­tail

Shoes & Accessories - - The Month That Was -

The gov­ern­ment has cleared a pro­posal al­low­ing 100 per cent for­eign di­rect in­vest­ment (FDI) in sin­gle-brand re­tail via au­to­matic route. It has also eased FDI rules for the avi­a­tion and the con­struc­tion sec­tors.

The gov­ern­ment said the move was to lib­er­alise and sim­plify the FDI pol­icy to pro­vide ease of do­ing busi­ness in the coun­try. It claims that the de­ci­sion will lead to larger FDI in­flows con­tribut­ing to growth of in­vest­ment, in­come and em­ploy­ment.

The ex­ist­ing pol­icy FDI pol­icy on sin­gle brand re­tail trad­ing al­lows 49 per cent FDI un­der au­to­matic route, and FDI be­yond 49 per cent and up to 100 per cent through gov­ern­ment ap­proval route.

The move has re­ceived mixed opin­ions. The Con­fed­er­a­tion of All In­dia Traders (CAIT) ob­jected to the gov­ern­ment’s move to al­low 100 per cent FDI in sin­gle-brand re­tail, say­ing the de­ci­sion would lead to an easy en­try for multi-na­tional com­pa­nies and harm do­mes­tic trade.

Mean­while, the in­dus­try ex­perts, as well as the largest trade body of re­tail­ers Re­tail­ers As­so­ci­a­tion of In­dia (RAI), have hailed the new for­eign in­vest­ment norms for sin­gle-brand re­tail. “We be­lieve the de­ci­sion to al­low 100 per cent FDI through au­to­matic route will ease the process for for­eign as well do­mes­tic brands,” Ku­mar Ra­jagopalan of RAI was quoted.

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