FDI in Retail — Coming Soon

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The Centre’s decision to allow 51 per cent of foreign direct investment (FDI) in the multi-brand retail sector met with protests in Parliament in November. The Centre had also decided to remove the cap on the single brand format which could pave the way for global chains such as WalMart, Carrefour and Tesco to open mega stores in the country. The decision, which was hailed by the corporate sector, managed to create a deadlock in Parliament. The biggest blow came from within the United Progressive Alliance, with allies Trinamool Congress and DMK raising their voices against the issue. Financial experts predict that the entry of FDI in India will help generate employment. With global chains entering the retail market, 80 lakh new jobs will be created. However, due to the impasse in Parliament, the Centre has now decided to put the issue on hold. Prime Minister Manmohan Singh, however, is hopeful of implementing the policy by March 2012 after the completion of Assembly Polls in five states. Congress scion Rahul Gandhi has come out in full support of the decision, stating that his party will remain firm on the decision. He also slammed the Opposition for trying to “sabotage” a move which will reportedly grant the Indian farmers a high return on their produce.

Read 11873 timesLast modified on Tuesday, 06 November 2012 11:51
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