It is a myth that FDI in retail will kill at local kirana stores.
The Bilateral Aviation Safety Agreement, the civil nuclear technology transfer, telecom infrastructure security and business jet landing rights are among other "policy accomplishments in 2011" listed on the US chamber's website.
Finance Minister Pranab Mukherjee, Home Minister P Chidambaram, Defence Minister AK Antony and Congress president's political secretary Ahamed Patel were present at the Congress core group meeting in which the Lokpal issue was discussed, sources said
International investors will source internationally and most merchandise sold, in the first instance, would be sourced from the low-cost economies of the world.
Consultants expect the sector to grow 20-25% next calendar year.
Commerce and Industrial Promotion minister Anand Sharma's rise in government has been dizzying, which is why his current setback is also precipitous. Ahead of the cabinet meeting that took place after Sharma's project -- to ensure the approval of Foreign Direct Investment (FDI) in retail -- was given the thumbs down, his colleagues are asking some searching questions and seeking some hard answers.
The first IKEA store in India is unlikely to come up during the second term of the United Progressive Alliance government, which ends in May 2014, as the euro 25-billion Swedish furniture major takes "years" to set up shop in a new country after securing the necessary approvals.
Stepping back to break the logjam in Parliament, the government on Wednesday put the controversial decision on foreign direct investment in retail on the backburner till a consensus is evolved, a proposal the entire opposition and the dissenting allies accepted without reservation.
Intriguingly, the agenda for the Cabinet meeting convened on Wednesday evening has not been circulated as the government wants to study the Opposition's mind before deciding how the Cabinet handles the FDI-in-retail decision it had taken on November 24.
it is a clear indication that the country's politicians do not hesitate to play politics with economic reforms and nor do Indian industry leaders seem unduly worried about economic policy stasis.
In what is seen as a significant move, the DAP featured measures to reduce delay in procurement of essential items by the three services as it proposed a new enabling provision to acquire them through capital budget under a simplified procedure in a time-bound manner.
Even so, whenever a hitherto closed sector has been opened to FDI or the sectoral investment cap has been raised, the move has drawn strong protest. The latest instance is multi-brand retail.
With Trinamool Congress chief Mamata Bannerji refusing to budge from her stand against the UPA government's decision allowing 51 per cent FDI in retail, the Congress party's spin doctors are working overtime to project the decision favourably to the country. Sheela Bhatt reports
Bringing Rahul Gandhi in the line of fire, Anna Hazare on Friday alleged that Congress might have taken a U-turn on contentious issues of lower bureaucracy and Central Bureau of Investigation in Lokpal under his instructions and claimed that the government was delaying resolution of Foreign Direct Investment (in retail) imbroglio to avoid passing Jan Lokpal Bill in the Winter Session of Parliament.
While protests are mounting against the government policy allowing foreign direct investment in multi-brand retail, the chain, founded by Bal Gangadhar Tilak and supported by the likes of Ratanji Jamshedji Tata, is in the midst of change. Besides foreign money, it is also keen on establishing a global presence.
With Parliament deadlock escalating, Prime Minister Manmohan Singh on Thursday told the allies that it will be difficult to withdraw the decision to allow foreign direct investment in retail and that they should vote with the government on the issue.
Big players like Wal-Mart will kill the Indian retail sector," Prakash Javadekar, member of BJP in Rajya Sabha said.
Virtually rejecting demands from within United Progressive Alliance and outside for rollback of foreign direct investment in retail, Prime Minister Manmohan Singh on Tuesday justified the decision as a well considered move.
"Foreign Direct Investment (FDI) will bring along backward integration and investment in farm to fork. States like Karnataka, Andhra Pradesh, Tamil Nadu will be able to move produce more efficiently across the country", Confederation of Indian Industry (Southern Region) Chairman T T Ashok said in a statement.
Regardless of the merits and demerits of foreign direct investment in retail, the fact is that a tie-up between organised retailers and farmers benefits both, as also consumers of farm goods, writes Surinder Sud.
Finance Minister Pranab Mukherjee may be right in pushing for FDI in retail because reports have been pouring in, indicating that the economic downturn in India and abroad will worsen in coming weeks. Sheela Bhatt examines the politics behind the government's decision.
The recent Cabinet decision to allow 51 per cent foreign direct investment in the multi-brand retail sector in India has deeply divided the nation's political, social and trading classes.
In Thailand and Brazil, within years, they have been seen to have destroyed domestic competition. Moreover, uniformly they are accused of adopting bad labour practices, squeezing manufacturers and following predatory pricing policies, says M R Venkatesh.
Global retail giants, including IKEA, Walmart and Carrefour, are studying the finer details of India's relaxed foreign direct investment norms for the sector as they look to tap opportunities in the country.
Manmohan Singh held consultations with Sonia Gandhi soon after the Lok Sabha and the Rajya Sabha adjourned for the second day on the FDI issue.
Bharatiya Janata Party-led National Democratic Alliance on Monday accused the government of allowing foreign direct investment in retail with an aim of distracting and disrupting Parliament that was set to discuss crucial issues of price rise and black money.
Only recently had UP chief minister and Bahujan Samaj Party supremo Mayawati expressed reservation against the Congress-led government's proposed FDI-in-retail policy.
Flaying the Centre's decision to allow Foreign Direct Investment in retail, Tamil Nadu Chief Minister Jayalalithaa on Sunday alleged it was taken under pressure from a few retail giants and asserted her government would not allow multi-brand global players to set up their markets in the state.
Pointedly blaming Congress general secretary Rahul Gandhi for the United Progressive Alliance's government's nod to Foreign Direct Investment in retail, Uttar Pradesh Chief Minister Mayawati made it clear on Saturday that she would oppose the move tooth and nail."The Bahujan Samaj Party will launch a strong movement against the policy in case the UPA government manages to get the approval of Parliament," she declared.
The increase in FDI limit in the insurance sector may attract Rs 30,000 crore that the industry requires over the next five years, Insurance Regulatory and Development Authority has said.
The devil is always in the detail. Closer scrutiny of IKEA's India entry application makes it clear the celebrations may have been premature, as the euro 25-billion Scandinavian furniture major virtually wants an overhaul of the single-brand retail FDI policy.
While raising the foreign direct investment limit to 100 per cent in the single-brand retail segment six months earlier, the government asked retail chains with over 51 per cent foreign investment to source at least 30 per cent of the value of products sold in the country from Indian small/village/cottage industries, artisans and craftsmen.
Petrol price may be cut by about Rs 1.60 per litre later this month as appreciation of rupee against the US dollar has helped state firms make profit on the fuel.
This prompted some reshoring -- the process of returning jobs and manufacturing to the company's home country -- of manufacturing activity, Shen said while insisting this will not become a general trend, state-run China Daily reported.
The industry ministry has circulated a draft Cabinet note for allowing foreign direct investment in multi-brand retail, a move which will allay industry's concern over policy paralysis.
Rediff.com's Priyanka speaks to a number of street vendors in the national capital and tries to gauge their anxieties over government's proposed move to bring in upto 51 per cent foreign direct investment in multi-brand retail.
In July 2011, the country had received foreign investment worth $1.10 billion.
Finance Minister Pranab Mukherjee on Friday said the government is considering further liberalisation of the country's foreign direct investment policy for attracting investment in the infrastructure sector.
Indian-origin Labour Member of Parliament Keith Vaz has advised Indian legislators to be careful while handling the issue of foreign direct investment in retail, cautioning that a major dominance by super markets may not be in the interest of common man.
Petition, filed by a lawyer, is likely to be heard next week.
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