Retail FDI May Have to Wait, Panel Calls for Wider Debate.

International retail chains like Walmart and Tesco may have to wait some more before they get to set up shop in India as an inter-ministerial panel has called for wider debate before allowing foreign direct investment in multi- brand retail.

“The panel is of the view that the issue needs to be discussed some more and with a lot more stakeholders. So the sector can’t be opened up to foreign investors at present,” an official privy to the development said.

Following a discussion paper by the department of industrial policy and promotion on FDI in multi-brand retail released last year, the government had set up an inter-ministerial group headed by additional secretary in the consumer affairs ministry and includes officials from the finance, agriculture, commerce and industry ministries to review the proposal.

“More than two-thirds of the 180 respondents to the discussion paper have opposed the move. More worryingly, most of the respondents who have favoured the proposal are retail chains, etc who will directly benefit if the sector opens up,” the panel has said in its final report.

Source : indianexpress.com