Tesco was the first global retailer to apply for multi- brand retailing in India.
The Bahujan Samaj Party on Monday indicated that it will support the government in Parliament on the issue of Foreign Direct Investment, saying the fact that the Centre has not thrust the policy on states and the aim of keeping communal forces at bay will determine its stand.
This much needed reform will also help the consumer who is hit with an eight per cent inflation in the month of August mainly for food items and we also expect to see quality improved with products delivered to the market place and the farmers getting a bigger share of the pie, INOC (I) said in its statement.
With the 72-hour deadline to the Centre to rollback diesel price hike, LPG subsidy cap and FDI in multi-brand retail expiring on Monday, the Trinamool Congress mounted fresh pressure with a Union minister belonging to it listing three options, including withdrawal of support to the United Progressive Alliance.
The storm over the issue of Foreign Direct Investment in retail refused to subside with the matter, along with quota in promotions for Scheduled Castes and Scheduled Tribes, paralysing proceedings in Parliament for the second day on Friday.
At a time when Bharatiya Janata Party and several other parties have also opposed FDI in retail, the Left leaders said they have appealed to all parties to support the motions in both Houses of Parliament.
India appears poised to sustain its growth in a more durable way than before with the economy carrying the momentum from FY23 into the current fiscal year, the Annual Economic Review for 2022-23 released by the finance ministry on Thursday said. However, the report cautioned that escalation of geopolitical stress, enhanced volatility in global financial systems, sharp price correction in global stock markets, a high magnitude of El-Nino impact, and modest trade activity and FDI inflows, are factors that could constrain the pace of growth. "Should these developments deepen and dampen growth in the subsequent quarters, the external sector may challenge India's growth outlook for FY24," the finance ministry said.
Spanner may have been thrown in the government works on foreign direct investment in multi-brand retail.
Reserve Bank Governor Raghuram Rajan on Monday warned against compromising India's interest for the sake of attracting foreign investment and said the priority should be framing transparent policies as well as resolving contractual tax disputes quickly.
"It is unprecedented. When Parliament is in session, a major decision was taken outside Parliament. It has never happened," Communist Party of India-Marxist leader Sitaram Yechury told reporters outside Parliament House.
Fanning the hopes of private industry, the government today said it would consider allowing 49 per cent foreign investment in the defence sector "on a case-to-case basis."
Trai and telecom companies are divided in their views on the issue of raising the foreign direct investment (FDI) limit in various media-related activities like cable television, direct-to-home, etc. Trai has proposed across-the-board increase in the FDI limit across cable (49 per cent), DTH (49 per cent), HITS (no existing limit) and satellite radio (no existing limit) to 74 per cent, as allowed in the telecom sector. Companies like Bharti Airtel are supporting this proposal
Data show leather got just 0.12% of the total FDI inflows during August 1991-March 2007.
The government will draw up FDI guidelines for minor investors and set up an exclusive park for overseas units.
The proposal was mooted by the department of industrial policy and promotion in the ministry of commerce and industry.
India, at present allows 51 per cent FDI in single brand retail and 100 per cent in the cash-and-carry .
The Confederation of All India Traders, the apex body of trade federations and small-scale sector players in the country, upped their campaign on Saturday against the United Progressive Alliance government's proposal to bring in foreign direct investment in multi-brand retail by another notch. The CAIT announced a nationwide campaign, 'Retail FDI bhagao, apne vatan ko bachao' (Chase out FDI in retail, save our nation) in the national capital on Saturday.
Deadlock over the government's decision to allow FDI in retail paralysed Parliament for the fourth day on Wednesday, with a united opposition joined by United Progressive Alliance partners Trinamool Congress and Dravida Munnettra Kazhagam disrupting proceedings, demanding a rollback of the controversial decision. With formal and back-channel talks between government leaders and their opposition counterparts failing to make any breakthrough, both Houses were adjourned.
In a major relaxation of foreign investment rules in the pharma sector, a special group set up under the finance ministry has suggested it could consider permitting up to 49 per cent FDI (foreign direct investment) in the automatic route for brownfield investments in case the company's control remained in Indian hands.
Additional investment of $190 billion has to be made in the next eight years.
The final guidelines for raising the foreign direct investment ceiling in telecommunications to 74 per cent may be issued soon.
Ahead of the key vote by Hutchison Telecom shareholders on sale of Indian assets to Vodafone, the Hong Kong-based firm and its minority partners in Hutch-Essar have asserted that their investments met foreign direct investment norms
It is a myth that FDI in retail will kill at local kirana stores.
Government has issued a formal notification for raising foreign direct investment limit in public sector refineries to 49 per cent. The FDI would require prior approval of Foreign Investment Promotion Board. The condition of compulsory divestment of up to 26 per cent by foreign companies commencing trading and marketing of petroleum products has been deleted. Government had allowed 100% FDI in actual trading and marketing of petroleum products, with 26% divestment condition.
"AAP has done a fabulous job highlighting corruption and governance issues and have a good platform for that, but their economic platform is very scary," Venktesh Shukla, president, The Indus Entrepreneurs Silicon Valley, the largest TiE chapter, told Rediff.com. "Valley investors are watching India minutely; the next few months are very crucial for Silicon Valley investors."
India received Rs 14232.42 crore (Rs 142.32 billion) worth of foreign direct investment in the first nine months of the current fiscal as opposed to Rs 12117.36 crore (Rs 121.17 billion) FDI received in the whole of 2003-04 fiscal.
The commerce and industry ministry has informed the Prime Minister's Office that the Bharti Group has conveyed to the government that its joint venture with Wal-Mart was in compliance with the existing FDI policy.
The Government on Thursday said foreign direct investment will not be allowed in housing projects for urban poor.
Industry body CII has asked the governments of Delhi and Rajasthan to reconsider their decisions to scrap the FDI policy for multi-brand retail as such investments would help create millions of jobs and benefit consumers.
After topping it for two consecutive years, Gujarat slipped three places on the NITI Aayog's Export Preparedness Index (EPI) for 2022, as Tamil Nadu emerged as the most export-ready state, the central think tank said in its report released on Monday. In a continuing trend, coastal states were found to have the most robust export infrastructure, which officials attributed to the integration of maritime trade into the core of their economies. Maharashtra and Karnataka retained their positions -- second and third, respectively; Haryana was ranked first among landlocked states and fifth overall.
Leader of Opposition in the Rajya Sabha Arun Jaitley on Tuesday blamed Congress President Sonia Gandhi and her Congress General Secretary son Rahul for the FDI decision. Jaitley said that the decision on FDI was taken without bothering that it will hurt the interests of farmers, small traders as well as consumers, and would in no way help the economy.
On the retail FDI issue, a possibility being talked about in the corridors of power is the Congress might withdraw its support to AAP in Delhi.
Propelled by strong growth in the pharmaceutical sector, India's foreign direct investment jumped over 133 per cent to $814 million during April-June 2004 as compared to $349 million reported in the corresponding quarter last year.
While Federation of Indian Chambers of Commerce and Industry extended an all-out support to the government, Confederation of Indian Industry recommended 'a calibrated approach for introducing FDI in the retail sector in terms of the percentage and minimum capitalisation requirements'.
Opposition members created an uproar in both Houses of Parliament on Monday over issues like allowing 51 per cent Foreign Direct Investment in multi-brand retail, demand for Telangana state and threat to people of Kerala due to Mullaperiyar dam.
The stipulation that new front-end stores will have to be set up will impact M&A in the sector.
The FIPB, headed by Finance Secretary Arvind Mayaram, at its meeting on Tuesday considered 35 proposals.
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