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.
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.
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.
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.
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.
Tesco, which has sought the government's permission to buy 50 per cent stake in Tatas-owned Trent Hypermarket Ltd, will have to invest atleast $55 million in creation of fresh back-end infrastructure.
The war of words between Finance Minister P Chidambaram and Arun Jaitley, leader of opposition in the Rajya Sabha, refuses to die.
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 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.
BJP has strong reservations in allowing FDI in mult brand retail.
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).
At a time when the overall narrative is around India being an attractive investment destination, the two American multinationals are more specific in projecting India as their centrepiece.
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.
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.
In India, these global retailers exported goods worth $725 million in 2010. Modern retail constitutes 6.5 per cent of the $435-billion overall Indian retail 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.
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.
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.
Why the Union Cabinet was so impatient to allow FDI in multi-brand retail flummoxed many.
"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.
Says allow companies with up to 49% FDI to invest in restricted sectors.
WalMart International President and CEO Doug McMillon said in Davios that the Indian government's concerns over allowing foreign direct investment in multi-brand retail were misplaced.
Punjab and Gujarat are in favour of FDI in multi-brand retail in food items while many others have vehemently opposed the idea, a government official said.
The $31-billion company, which sources around 30 per cent of its global consumption from India, had also criticised the Indian government for not opening foreign direct investment in single brand retailing.
Foreign direct investment in the multi-brand retail may be allowed subject to a stiff condition that global retailers will have to invest heavily in the back-end infrastructure like warehousing and cold storage.
The government on Tuesday indicated that it was open to changing FDI norms for multi-brand retail sector, saying policies 'are not cast in stone'.
UK-based retail major Tesco Plc on Tuesday filed the first application for setting up multi-brand retail outlets in India.
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Retail giant Tesco's entry into Indian market has hit a regulatory roadblock.
The previous United Progressive Alliance government had permitted up to 51 per cent foreign direct investment in multi-brand retail but the current National Democratic Alliance government is opposed to it.
Rejecting the demand of global retailers like Walmart, the government on Wednesday said there is no plan to relax the mandatory 30 per cent local sourcing norms for foreign players in the multi-brand retail sector.
Local traders are evaluating other options rather in FDI.
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