Commerce and Industry Minister Anand Sharma has asked global retail chains not to rush the government into allowing foreign direct investment (FDI) in multi-brand retail.
After the UPA regime's move to suspend its decision on foreign direct investment (FDI) in multi-brand retail, the industry is turning nervous about the prospects of single-brand retail as well.
After the UPA regime's move to suspend its decision on foreign direct investment (FDI) in multi-brand retail, the industry is turning nervous about the prospects of single-brand retail as well.
To stay on the right side of the Trinamool Congress, the Centre has opened its coffers for West Bengal.
With her latest masterstroke, Trinamool Congress chief Mamata Banerjee has made Congress lose its credibility in the eye of the aam admi, says Sheela Bhatt
Opposition leader in the Rajya Sabha Arun Jaitley on Friday said the United Progressive Alliance government was trapped in its own web of "chakra-vyuha" with the ill-timed decision to allow foreign players in multi-brand retail. He said that the UPA had landed itself in a no-win situation, with no escape route.
The meeting came against the backdrop of members of DMK and Trinamool Congress joining opposition in demanding rollback and a discussion in Parliament under an adjournment motion.
Till the other day, the Indian National Trade Union Congress (INTUC) had made no secret of its opposition to foreign direct investment in multi-brand retail. But the trade-union wing of the ruling Congress party at the Centre has now had a change of heart.
The world's largest retail company, Wal-Mart was founded by Sam Walton in 1962.
The mood in the government seems to have hardened and they do not seem to be in a mood to budge on the issue. Prime Minister Mamhohan Singh indicated as much during his speech at a Youth Congress meet in the capital on Tuesday.
Nitish has warned that FDI in retail sector will destroy the local retailers across the country.
Wal-Mart's "suspected bribery" unearthed in India involves thousands of small payments to low-level local officials.
As and when the sector opens up to FDI, the world's second-largest retailer will automatically get equity in Pantaloon Retail or will enjoy right of first refusal, said the sources.
Founded in 1924 by Arnold Schweitzer, Caran d'Ache is a product of Switzerland's long history of watch-making and jewellery manufacture.
Emerging consensus is that all state capitals be covered.
Domestic chains rejoice at Cabinet's in-principle nod to 51% cap, most of them call it a positive development.
The committee of secretaries (CoS) looking into the issue of allowing foreign direct investment (FDI) in the multi-brand retail segment is likely to meet this Friday to try for more agreement on the issue.
India's MRP and Packaged Commodities Acts are dated and not in line with the modern world's digital price mechanisms and comparisons.
India, at present allows 51 per cent FDI in single brand retail and 100 per cent in the cash-and-carry .
In a 21-page discussion paper, it has sought comments from stakeholders on a dozen issues, ranging from allowing retail chains with foreign capital to open stores in select cities to government approval for opening each store, mandatory hiring of rural population and sourcing from small and medium enterprises.
India allows 51 per cent FDI in single brand retail, but multi-brand retail is restricted for foreign investment.
As against the 2007 target of 10-15 stores in seven years, it is planning to touch around 25 cash and carry outlets in India by the end of 2012.
The retail companies are hoping that the Finance Minister Pranab Mukherjee would accord industry status to the sector and allow unrestricted foreign direct investment inflow.
Although the United Progressive Alliance government returned to power, minus the push and pulls of Left parties, it decided to keep western multi-brand retail chains off from the country's $450-billion retail market.
The debate over whether to relax FDI norms in the Indian retail sector gained momentum in 2010.
Foreign investment cannot enter India through a circuitous route in sectors like multi-brand retail, atomic energy and the lottery business and will need to operate within the sectoral caps, according to new guidelines.
Commerce and Industry Minister Anand Sharma along with officials from his ministry were in the Nordic country for a two-day visit. They were accompanied by Indian industrialists led by the Confederation of Indian Industry.
The government decision to cap sales by cash-and-carry players to their group front-end companies at 25 per cent of overall sales can force these wholesalers to reduce their investment plans by around Rs 800 crore (Rs 8 billion) in the immediate term, consultancy firm KPMG said.
Retail companies in the organised sector want the government to take a series of initiatives in the forthcoming Budget that would boost consumption, and have sought 'industry status' as well as abolition of the service tax to beat back the slowdown.
Foreign investment in multi-brand retail could help ease the problem of high food prices, an issue on which the government is fighting a major political battle, research firm Crisil said.
The European Union on Friday asked India to further open its economy for foreign investments even as the country has taken tentative steps towards liberalising FDI in sensitive defence and multi-brand retail sectors.
Senior cabinet minister Kamal Nath on Monday said 'new things would be thrown up' as the government fine-tunes the foreign direct investment policy. India attracted about $25 billion for April-February 2008-09. The government had announced changes in the FDI policy in February which led to confusion among investors.
In the first nine months of 2009, FDI dipped by 26 per cent to $21.4 billion from $29 billion a year ago. The total FDI inflow into India since 2001 crossed the $100 billion mark.
Bharti Retail, a subsidiary of Bharti Enterprises, on Monday said it will increase the head count to 60,000 by 2015 from 2,000 now as it has set a target to become a $1-billion company by then.
A panel headed by Economic Affairs secretary Arvind Mayaram had suggested FDI limit be raised to 49 per cent in almost all sectors through the automatic route.
Finance ministry officials are of the view that current restrictions that prohibit FDI in multi-brand retail cannot be extended to franchise agreements between an Indian company and an overseas partner.
Reliance Retail and Bharti Enterprises are understood to be in talks to buy India assets of the world's second largest retailer Carrefour that has decided to exit the country by closing its five stores.
Anand Sharma, who took charge of the nodal ministry for FDI on May 29, said there is no need for a relook at the policy amended in February by the Department of Industrial Policy and Promotion. While the policy does not allow overseas inflow into this sector, the changes in February were perceived to be opening the sector to FDI up to 49 per cent in an Indian firm that has a downstream subsidiary firm in retailing.
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