A large number of states, including Congress-ruled Kerala, are opposing the decision on concerns that the entry of foreign retailers like Walmart would lead to displacement of the neighbourhood kirana stores.
BJP has strong reservations in allowing FDI in mult brand retail.
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On September 14, the government allowed 51 per cent foreign holdings by multi-brand retail chains with two caveats -- one foreign retail chains like Wal-Mart, Tesco, etc will be allowed to set up shops only in those cities with over 1 million population; and secondly, they can operate only in those states, which allow FDI in retail.
The question is not whether FDI in multi-brand retail is desirable or not, but whether the rules of conducting business in Parliament need to be reviewed.
Spanner may have been thrown in the government works on foreign direct investment in multi-brand retail.
At present, Mahindra First Choice is the leader in the Rs 60,000-crore (Rs 600-billion) multi-brand used car market.
Ten states and Union Territories have endorsed the Centre's decision to allow FDI in multi-brand retail, Minister of State for Commerce and Industry Jyotiraditya Scindia said on Monday.
The Bharatiya Janata Party on Saturday refused to accept Prime Minister Manmohan Singh's contention -- that no international pressure was behind the decision to allow FDI in multi-brand retail -- and alleged that he has done a U-turn on his own stance earlier.
Voting will be held in the Rajya Sabha on Friday on the Bharatiya Janata Party's motion opposing the Congress-led United Progressive Alliance Government's move to allow Foreign Direct Investment in multi-brand retail.
Opposing Foreign Direct Investment in multi-brand retail, the Samajwadi Party on Tuesday said that the move is not in the interest of the country.
Proponents of FDI in retail have argued that the story of corporate retail will be quite different in India since our social and economic patterns are in some ways unique.
The government may have plumped for FDI in multi-brand retail at this juncture because this is an issue which has also divided the opposition, believes Neerja Chowdhury
Strongly opposing major reforms announced by the Centre, key United Progressive Alliance constituent Trinamool Congress on Friday set a 72-hour deadline to the government to withdraw decision on multi-brand retail and diesel price hike.
India's plans to relax foreign direct investment (FDI) rules across a broad spectrum of industries have received the final approval from the Cabinet Committee of Economic Affairs (CCEA).
Breaking his silence on FDI in multi-brand retail, Dravida Munnetra Kazagham chief M Karunanidhi on Monday said his party will not support the Centre's decision to allow foreign investment in the sector.
Trinamool Congress Monday said Left's failure to support a no confidence motion to be brought by it in winter session will mean that their opposition to FDI in multi-brand retail "is false and sham" and voiced hope that all parties would come on board.
Offline retailers are feeling the Omicron January chill as consumers are apprehensive about venturing out in the midst of rising Covid cases across the country. Covid restrictions, as well as concerns over the new virus variant, are seeing shoppers pull back from the high streets and shopping malls, clearly cautious about streaming into stores and choosing to self-censor instead. Offline retailers' hopes of a bumper End-Of-Season Sale (EOSS) and Republic Day (R-Day) Sale to compensate for losses over the pandemic have been dashed. Fewer trips to malls mean lower footfall and sales, resulting in higher piling of stock - and possibly higher discounts.
Seeking to dismiss reports of differences in NDA over FDI in multi-brand retail, the Bharatiya Janata Party on Wednesday said it was opposed to the decision in toto and indicated that it will scrap the policy if it comes to power.
With Trinamool's 72-hour deadline to the Centre to rollback diesel price hike, LPG subsidy cap and FDI in multi-brand retail coming to an end, opposition JD-U on Monday sought to reach out to Mamata Banerjee saying that she "sticks" to her stand.
The stipulation that new front-end stores will have to be set up will impact M&A in the sector.
The USIBC -- a body that represents the views of Corporate America -- hailed India's steady progress in advancing major economic reforms in a statement following Cabinet approval for opening up India's vast multi-brand retail sector to foreign direct investment and removing the FDI cap in single-brand retail.
The Union Cabinet in its decision of November 24, which has since been put on hold, permitted 51 per cent FDI in the multi-brand retail, well above expectations of the Walmart and its Indian joint venture partner -- Bharti Group.
There was, however, no common ground between the government and the traders delegation as Commerce and Industry Minister Anand Sharma made it clear to them that there was no question of rollback of the decision to open the multi-brand retail to foreign investment.
Bharatiya Janata Party on Thursday asserted that it would use all mediums of democratic protest to oppose the move to allow Foreign Direct Investment (FDI) in multi-brand retail, saying this would harm self-employed retailers.
The Union ministry of food and consumer affairs proposes to insert a new clause in the fresh discussion note for the Cabinet on allowing foreign direct investment (FDI) in multi-brand retail.
India's MRP and Packaged Commodities Acts are dated and not in line with the modern world's digital price mechanisms and comparisons.
The world's largest retailer Walmart on Wednesday said its investments in India will grow manifold if foreign direct investment regulations on multi-brand retail are relaxed in the country.
It entered India in 2006, with the aim of tapping the promising consumer market.
While the Confederation of All India Traders is organising nationwide protests tomorrow, others like Bhartiya Udyog Vyapar Mandal plan similar movements next month.
The move to open multi-brand retail to foreign direct investment may run into rough weather, with key Bharatiya Janata Party-ruled states, as well as some constituent parties of the ruling United Progressive Alliance, rejecting or being ambivalent towards the proposed policy.
Why the Union Cabinet was so impatient to allow FDI in multi-brand retail flummoxed many.
The Indian retail segment has its own uniqueness and the country is one of the most exciting markets globally that is poised to grow to over a trillion dollars by 2025, according to Walmart Inc President and CEO Doug McMillon. Speaking at the Converge@Walmart event, McMillon noted that given the diversity of the Indian market, the company has to "think local and execute locally". "India is such a diverse market, it's not one country in some ways and so we have to think local and execute locally, and it has its own rules, and so, we've got to comply with those rules," he said.
After approving 51 per cent FDI in multi-brand retail, the CoS is said to have suggested stringent conditions for foreign retailers such as minimum investment of $100 million.
Early signs show firms rather lukewarm on entry; global economic climate, riders to FDI opening may be dampener.
Walmart is happy with its current partnership with Bharti.
Says allow companies with up to 49% FDI to invest in restricted sectors.
"I don't think that it is government's view that the present inflation cannot be brought under control without FDI in multi-brand retail. We can bring inflation under control," Planning Commission Deputy Chairman Montek Singh Ahluwalia said.
In its comment on the industry department's discussion paper on foreign direct investment in multi-brand retail, the joint venture between Bharti Enterprises and Walmart, said though 100 per cent FDI should be allowed in the sector, it would endorse a calibrated opening.
