Commerce and Industry Minister Nirmala Sitharaman on Saturday made it clear that the NDA government would not allow foreign direct investment (FDI) in multi-brand retail.
The assertion comes weeks after her ministry posted online about the previous UPA government's decision allowing 51 per cent foreign equity in the sector, which the BJP had opposed during last year's general elections. Sitharaman also stated that the government would come out with guidelines on FDI in e-commerce soon. Responding to questions asked by social media users during a “talkathon” programme, Sitharaman clearly said: “FDI in multi-brand retail no, no.”
To celebrate the NDA's first anniversary, three Union ministers participated in a talkathon to highlight the government's achievements. Apart from Sitharaman, Human Resources Development Minister Smriti Irani and Coal and Power Minister Piyush Goyal answered a number of questions pertaining to their ministries during the 90-minute programme.
On FDI in the e-commerce sector, Sitharaman said she has been holding consultations with different stakeholders, including the industry and associations. Next month, the ministry would meet state governments' representatives on the issue, she added. “E-commerce is very technology-driven. It has a very big play and a lot of dynamism in the market. However, issues (in the sector) are several-layered and very complicated because they are related to taxation, and the e-commerce definition is also getting wider in scope,” she said.