Govt to revisit FDI norms soon
The government will next month initiate discussions on liberalising foreign direct investment (FDI) in sectors ranging from defence to agriculture and even retail.business Updated: Apr 26, 2010 23:32 IST
The government will next month initiate discussions on liberalising foreign direct investment (FDI) in sectors ranging from defence to agriculture and even retail.
The Department of Industrial Policy and Promotion (DIPP), the nodal agency for framing FDI policies, will come out with six discussion papers in mid-May on overseas investment norms.
"All the issues, which are troubling you will be covered (in the discussion papers)," DIPP Secretary R P Singh told reporters at a FICCI event here when asked if multi-brand retail would also figure in the discussion papers.
The government allows 51 per cent FDI in single-brand retail and 100 per cent in cash-and-carry (wholesale) sector. The government also allows 100 per cent FDI in drugs and pharma through the automatic route.
While transnational companies such as WalMart, Carrefour and industry chambers are pitching for opening up the multi-brand segment, a Parliamentary panel has proposed a "blanket ban" on entry of corporates into the sector.
Sources in the DIPP said the discussion papers, which would be put in public domain on May 12 or 13, would deal in sectors like retail, defence, pharmaceutical and agriculture. The DIPP will seek public comments on the concept papers.