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.
If the reforms are implemented, multi-brand retail majors such as Future Group and Reliance Retail might enter the fuel retail space.
The government has tried to remove as many glitches as possible, says Chidambaram.
The company's search for a partner in India seems to be grounded once again
'For our traditional membership base, it would be an access to disruptive ideas,' FICCI President Subhrakant Panda tells Asit Mishra/Business Standard.
Capital dumping is being used by foreign e-commerce firms to subsidise and engage in predatory pricing, oil-to-telecom conglomerate Reliance Industries (RIL) has told the Associated Chambers of Commerce and Industry of India (Assocham) in an internal document. The document alleges that this is leading to massive unemployment and financial distress among small merchants and kirana stores. It consists of various recommendations and proposed changes that deal with Press Note 2 of 2018 (PN 2), which RIL wanted Assocham to present to the government, according to sources.
Walmart-owned Flipkart on Thursday said the company is in compliance with Indian laws, including FDI regulations, and will cooperate with the Enforcement Directorate on the notice sent to the e-commerce major. The Enforcement Directorate (ED) has issued a show cause notice of Rs 10,600 crore to Flipkart and its promoters for alleged violation of the foreign exchange law, official sources said on Thursday. When contacted, Flipkart said it is in compliance with Indian laws and regulations, including FDI regulations.
Embattled retailer Future Retail Ltd (FRL) on Tuesday moved the Supreme Court to avert insolvency proceedings over missing a loan repayment deadline, even as its independent directors rejected an Amazon-supported offer to sell the company businesses at less than a third of what Mukesh Ambani's Reliance is offering. India's second-largest retailer, which operates multi-brand retail chains such as Big Bazaar, Easyday and Heritage, failed to pay Rs 3,494.56 crore to lenders by the due date of December-end and sought a 30-day grace period to resolve the situation. Unable to find money, it moved the apex court seeking to restrain its lenders from declaring the company a defaulter, which can invite initiation of insolvency proceedings.
Seeking to spur foreign investments, Finance Minister P Chidambaram has said the Union Cabinet will decide on raising FDI caps in different sectors in the third week of this month.
The stipulation that new front-end stores will have to be set up will impact M&A in the sector.
Global retail giant Walmart is expected to soon firm up its plan to foray into India's multi-brand sector.
In 50 days, 60% of the work force was let off in retail, agri, textile and other sectors.
The Indian government has simplified FDI policy inorder to attract global retail chains.
The party promised to contain inflation, pursue tax reforms and promote foreign investments.
The Enforcement Directorate, which probed the alleged contravention of foreign exchange laws by Walmart in its investments in domestic supermarket chain Bharti Enterprises, has found no violation of FDI guidelines by the US multinational retail giant.
The BJP-led government may not permit foreign retailers to open mega stores in the country as such a move may adversely impact small traders and farmers, new Commerce and Industry Minister Nirmala Sitharaman indicated.
FDI inflows into the country have been declining over the past two years despite policy easing in about a dozen sectors.
Thailand, Indonesia want unconditional access to India's multi-brand retail space.
Anand Sharma said the Rs 2,060-crore Jet-Etihad deal falls in line with new 'control' definition.
The move is likely to hit Bharti-Walmart, the 50:50 joint venture between the US' Walmart and Sunil Mittal-led Bharti Group that operates cash-and-carry outlets in India, the most.
The FDI policy is unviable for them in its current form.
The government liberalised FDI policy in sectors, including multi-brand retail, single-brand retail, commodity exchanges, power exchanges, broadcasting, non-banking financial institutions and asset reconstruction companies.
Minister says states have no legal way to revoke decision.
Congress-ruled Rajasthan and Delhi had said yes; 3 states which had okayed FDI have Assembly polls next year.
American retail major Walmart has snapped ties with Indian partner Bharti but its plans to enter the country's multi-brand retail space appears intact.
Retailers can buy existing facilities if they spend $50 mn to create additional infra.
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.
The private sector, the Prime Minister said, needs an environment in which enterprise can flourish and create both jobs and stimulate growth to ensure that it remains inclusive.
Foreign direct investment in the retail sector was one of the wish list of the US companies and the US had been pushing for it for quite some time now.
CPI leader D Raja also attacked govt for going back on its assurance to hold consultations with all stakeholders.
The CBI, in its letter, said the matter was 'analysed' by the agency and it 'revealed violations of RBI guidelines and FEMA regulations'.
Govt's decision to allow FDI will attract capital, boost confidence and soothe the nerves, say experts.
Though international biggies are already in India, they are yet to formalise plans for front-end multi-brand retail.
Mamata Banerjee, who had pulled out of UPA-II over FDI in retail, among other issues, would dedicate mall to people of Kolkata.
The conditions imposed on prospective investors in the retail sector betray a lack of understanding of the dynamics of the business.
The year started on a sombre note for the sector, with the lingering effect of the decision to put on hold relaxation of FDI in retail in 2011.
Corporate corruption in India is not just about bribing bureaucrats to bypass laws; it's about accounting frauds, kickbacks and cybercrime.
American retail giant Walmart has said it will provide "relevant information" to the Indian authorities for the judicial probe announced due to pressure from Opposition parties on the issue of the company's lobbying efforts in the US regarding India's multi-brand retail sector.
In matters of policy, this court will not interfere unless it is unconstitutional, the judge declared.
The United Progressive Alliance government won the vote on Foreign Direct Investment in multi-brand retail not by "floor management but by fund management", alleged Bharatiya Janata Party national spokesperson Muktar Abbas Naqvi on Saturday.
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