Concept papers on FDI in retail, defence soon

The Department of Industrial Policy and Promotion (DIPP) has announced to float six concept or discussion papers on foreign direct investment (FDI) related norms in different sectors, including defence, multi-brand retail, agriculture and financial sector, among others.
“You can expect the papers on defence and retail next week,” sources said. The concept notes would be floated on the DIPP Website to elicit views from stakeholders.

The paper on retail FDI may include a provision that interested global retailers would have to put in a significant part of their investment in the back-end infrastructure like warehousing and clod storage, a source said.

At present, FDI is not allowed in multi-brand retail, which is dominated by the neighbourhood kirana stores and is a politically-sensitive topic. However, foreign players are permitted in wholesale trade as also in single-brand retail.
Since FDI is not permitted in retail, world’s number one retailer Wal-Mart has settled for a cash-n-carry (wholesale) joint venture with the Bharti Group.

On defence, commerce and industry minister Anand Sharma stated recently that the Centre was open to liberalising FDI norms in defence and inter-ministerial consultations were on.
Press Trust of India

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