No Time Frame Set for Decision on Retail FDI.

The government on Monday said that it has not fixed any time limit for taking a decision on foreign direct investment (FDI) in multi-brand retail, an assertion which can upset the global majors like Walmart and Carrefour.

"No time frame has been fixed," Minister of State for Commerce and Industry Jyotiraditya Scindia said in the Lok Sabha in reply to a written question on whether any time frame has been worked for such a decision.

The Department of Industrial Policy and promotion (DIPP), in July, initiated a debate on the politically sensitive issue of FDI in the multi-brand retail sector.

It has received feedback from stakeholders, which includes not only the likes of WalMart India and French retail major Carrefour, but also different associations of small retailers that are opposed to the move.

"These views are presently being examined by an inter-ministerial committee in the Department of Consumer Affairs," Scindia said.

The committee comprises officials from ministries of micro, small and medium enterprises, agriculture, finance, rural development, commerce and industry and consumer affairs.

The concept paper had favoured opening of the sector, subject to creation of back-end logistics by the foreign retail stores.

While multi-brand retail is closed for foreign investors, 51 per cent FDI is permitted in single brand retail. There are no restrictions on inflows in wholesale cash and carry format business.

Source : profit.ndtv.com