September 17, 2012
Cabinet on Friday decided to operationalise 51% FDI in multi-brand retail but left it to the state governments to allow setting up of such stores.
September 17, 2012
Cabinet on Friday decided to operationalise 51% FDI in multi-brand retail but left it to the state governments to allow setting up of such stores.
The Government have finally given a green signal for Foreign Multi-Brand retail in India which allows a lot of Super Markets of Foreign countries to have direct tie-ups with Local Market and sell goods in India. It is a good news for stores like Wal-Mart who are eagerly waiting to open stores in India.
The Cabinet headed by Prime Minister Manmohan Singh cleared the decision at a meeting this evening, a Union minister, who asked not to be identified, said here.
For single-brand retail, the Cabinet decided that any firm seeking waiver of the mandatory 30% local sourcing norms would have to set up a manufacturing facility in the country, the minister added.
In November last year, the government had approved 51% FDI in multi-brand. This was, however, put on hold due to political opposition, including from UPA constituent Trinamool Congress.
The minister said since the implementation of the decision was put on hold, it had to go to the Cabinet again before going ahead with the decision.
Also stakes of Shares up to 49% will be given to Foreign Airlines from now on. This is one efficient action taken by Dr. Manmohan Singh's dithering Government. This new rule can effectively transform India's $450 billion retail market and tame inflation.
Courtesy: moneycontrol
