FDI in multi-brand retail gains momentum

The government is planning to work towards getting a nod

from all parties on 51 per cent FDI in multi-brand retail after the presidential polls this month. This would be the first step towards bringing in reforms and also a positive indication to global investors.

Earlier, keeping all the resistance from the opposition and other political parties aside, the Union cabinet, chaired by Prime Minister Manmohan Singh had approved and allowed 51 per cent FDI in multi-brand retail but with strong agitation by its own allies like Trinamul Congress, the government had to hold back plans till political consensus on the matter could be reached. But now that Trinamul Congress has been sidelined because of Mamta Banerjee’s stand on the presidential polls, the government has sought support from the Samajwadi Party and hopes to move ahead with retail reform with its support.

With commerce minister Anand Sharma gathering support from the chief ministers of Odisha, Punjab, Uttar Pradesh, Delhi, Maharashtra, Haryana, Andhra Pradesh and Assam, FDI in multi brand retail could soon be a reality. However, there still is a strong opposition from several states, including Bengal, Bihar and Kerala.

Many global retail giants like Wal-Mart and Carrefour are keen to enter the sector and have been waiting for the cabinet decision.