The government does not propose to permit foreign direct investment in retail business, Commerce Minister Arun Shourie assured the Lok Sabha on Monday.
"The existing policy being followed since 1997 is that the government is not going to permit FDI in retail trade," he said during the Zero Hour.
He was responding to a statement of Congress Chief Whip P R Dasmunshi that differences had arisen within the government on the issue with the Planning Commission opposing FDI in retail business and the 10th Plan recommending it.
Dasmunshi said if the ban on FDI in retail trade was lifted, it would lead to adverse impact on employment and destroy the prospect of the business in the country. He was supported in his contention by CPI-M member Hannan Molla.
Shourie said the issue had not come up before the Group of Ministers on FDI and that he would get the matter examined.
He recalled that two companies had been given special permission in specified areas of retail trade before 1997 but no FDI had been allowed after that.
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