JOIN USThe government on Friday made no commitment to repeal the previous UPA regime’s 51 per cent foreign direct investment policy in multi-brand retail even as Finance Minister Arun Jaitley said that his party and government are not in favour of allowing FDI in MBR.
“The views of my party on the policy and the views of my government on the same have been known to everyone for a long time. But the official position right now is: The earlier policy, which was legislated and implemented by the previous government, still stands,” Jaitley told a press conference.
To a question on how should an investor view the government’s stance in the wake of policy on paper being different than the party’s position, he said, “Investors had more clarity about retail FDI policy than you and I. An investor is cleverer than you and me and looks at everything, including his prospect,” he said.
Days after the Department of Industrial Policy and Promotion (DIPP) created a controversy by retaining 51 per cent FDI in multi-brand, Commerce Minister Nirmala Sitharaman had said that she would seek Cabinet okay to delete the portion from the consolidated FDI policy released last week. “I am not going to entertain any proposal in multi-brand retail,” the minister had told a private TV channel.
Meanwhile, in a communication to Sitharaman, the Confederation of All India Traders said that Indian retail trade is highly fragmented and for attaining an inclusive and conclusive growth, the entire retail sector needs to be structured and monitored.
The BJP in its election manifesto in 2014 had said, “Barring the multi-brand retail sector, FDI will be allowed in sectors wherever needed for job and asset creation, infrastructure and acquisition of niche technology and specialised expertise.”
So far only one investment proposal, by UK-based Tesco, has been cleared since 51 per cent FDI was allowed in 2012.