NDA Govt not to clear new proposals under multi-brand FDI

While the Narendra Modi-led NDA government has retained the multi-brand FDI policy that allows up to 51 percent foreign investment, it has said that the Centre will not approve any new FDI proposals in multi-retail trade.

“It (FDI in multi-brand retail trade) is ineffective and not any proposal will be cleared while BJP is in power,” BJP spokesperson GVL Narasimha Rao said during a press conference at the party headquarters. He was replying to a query whether the BJP was in favour of withdrawal of the policy that was first approved during the Congressled UPA government.

Recently, industry body Assocham said that the Government should allow FDI in multi-brand retail through public-private partnership (PPP) with adequate safeguards to protect domestic stakeholders. “Entry of foreign players in retail sector must be gradual and with social safeguards so that the farmers, consumers and small retailers are resilient to any potential adverse situation,” it said.

"The government should try to ensure that foreign and Indian players are at equal footing, so that domestic players (especially traditional retailers) are not on the back foot," the chamber pointed out. According to an Assocham study, fresh investment in the country's organized retail sector will generate 10 million new jobs, and about five to six million jobs in logistics alone.