NDA govt retains 51 percent FDI in multi-brand retail

The BJP-led NDA government has retained the previous UPA regime's decision allowing foreign retailers to open multi-brand stores with 51 percent ownership, a consolidated FDI policy document released said. The previous government allowed 51 percent foreign investment in multi-brand retail in 2012 but left the final decision of letting foreign players open stores in a particular state, to state governments.

The BJP, on the other hand in its election manifesto, had opposed FDI in multi-brand retail however, interestingly it made no changes in policy. The latest edition of the annual FDI document, a 119-page new compendium, details all existing FDI policy decisions and also changes made over the past one year by the Modi government.

With no hope for FDI in multi-brand retail and top level executives quitting the company, French retail major, Carrefour, the world's second largest retailer, exited India. Walmart, on the other hand decided to go solo with its wholesale business after parting ways with Bharti Retail. International biggies, once keen to explore the country’s lucrative retail market, have put their plans on hold sighting stringent FDI rules and current government’s anti-multi-brand FDI stand as hurdles to their prospects in India.