Govt to further ease multi-brand FDI norms

Despite throwing the multi-brand retail market open

for foreign direct investments nine months back, Indian government is yet to see any major proposal coming their way, as global giants’ are finding the FDI norms difficult for the entry. Most have taken a wait and watch approach. Keeping the current scenario in mind, Commerce and Industry Minister Anand Sharma has hinted at government’s decision to further simplify the investment norms in multi-brand retail.

The government had recently issued clarifications on investment guidelines, which failed to create necessary momentum among the domestic and foreign retailers. After a review meeting on Sunday, Sharma said that the government may further simplify investment guidelines in multi-brand retail. India has allowed 51 percent foreign direct investment (FDI) in multi-brand retail but is yet to receive an investment proposal.

“If there are any other issues they (global investors) have in mind, the government is receptive to that and for any further clarity in the guidelines (are required, the ministry will clarify that), as the objective of the policy is to attract FDI,” Sharma told reporters, a day before leaving on a 10-day tour of Helsinki, St Petersburg, Belfast and London where he is expected to address investors.

Sharma further added that he will chair a Retail Round Table involving CEOs of Indian companies and foreign investors on June 27 to seek views on implementation issues and to address their concerns, if any. Any FDI proposal in multi-brand retail “will be fast-tracked and (we) will do handholding, wherever required, as we have done in the case of IKEA”, he added.