JOIN USGiven the massive growth as well as business potential of India’s vibrant retail segment, he is expected to push for further liberalising the FDI regime in retail sector especially opening the multi-brand retail to foreign investment.
The high powered Economic Policy Research Bureau (EPRB) of the US administration has identified India’s retail sector as one the emerging segments that provide huge opportunity to US companies to make meaningful investment.
It is being acknowledged in the US business circle that investment by American firms in India’s multi-brand retail sector will act as catalyst in revitalising the US economy. Higher volume of business turnover by the US retailing firms in India will widen the scope for more repatriation of money back home thus injecting more funds to the US economy. This is the reason why President Obama will call for liberalising the FDI regime in India.
US Commerce Secretary Gary Locke is expected to raise the issue during his talks with Commerce Minister Anand Sharma. Currently India does not allow FDI in multi-brand retailing, dominated by kirana shops. It allows 51 per cent FDI in single brand and 100 per cent in cash and curry stores, which are back-end outlets permitted to sell only to registered retailers.
Recently the Department of Industrial Policy and Promotion—a nodal authority on FDI-related issues—floated a discussion paper recommending entry of FDI in multi-brand retailing.