Zee Media Bureau/Amartya Sinha
New Delhi: The union government has decided not to allow any foreign direct investment in the multi-brand retail trade. This was stated by Commerce and Industry Minister- Nirmala Sitharaman on Monday.
While addressing a press conference in New Delhi, Sitharaman clarified that her government's tough stance against FDI in retail still remains unchanged. She said that there should be no ambiguity about the government's FDI policy.
The proposal to allow 51% FDI in multi-brand retail was formulated during the erstwhile UPA-2 regime. The previous Dr.Manmohan Singh led government had already approved a proposal by British retail giant TESCO to invest in India.
Meanwhile the new Narendra Modi led government still remains ambigous about allowing FDI in online B2C retail.
The ruling party- BJP is of the view that the unorganised retail industry in India employs a large number of small traders who may be impacted by big foreign retailers if FDI in multi-brand retail trade is allowed.
The decision by the new government not to allow FDI in retail will lead to a setback to foreign retail giants striving to invest in India.
