Govt trying to reach consensus on FDI in multi-brand retail | india | Hindustan Times
Today in New Delhi, India
Dec 11, 2016-Sunday
-°C
New Delhi
  • Humidity
    -
  • Wind
    -

Govt trying to reach consensus on FDI in multi-brand retail

india Updated: Mar 16, 2012 13:43 IST

PTI
Highlight Story

Indian-finance-minister-Pranab-Mukherjee-center-holds-a-briefcase-containing-the-annual-budget-documents-as-he-arrives-at-the-Indian-Parliament-in-New-Delhi-Mukherjee-presented-India-s-new-budget-today-amid-concerns-about-inflation-the-country-s-falling-growth-rate-and-its-large-deficit-AP-Photo-Saurabh-Das

The government on Friday said consultations are on with states to arrive at a broad-based consensus on allowing 51% foreign direct investment in the politically-sensitive multi-brand retail trade.

Finance minister Pranab Mukherjee, while presenting the Budget for 2012-13, also said a proposal to allow foreign airlines acquire up to 49% equity in air transport undertakings is under active consideration.

Following widespread opposition, including from its own allies and several states, the government suspended its decision to allow 51% FDI in multi-brand retail.

"Efforts are on to arrive at a broad-based consensus with state governments on allowing FDI in multi-brand retail up to 51%," he said.

In November last year, the Cabinet allowed 51% FDI in multi-brand retail and 100% FDI in single-brand retail.

While the decision on FDI in the multi-brand retail sector has been held back, the government has gone ahead with allowing foreign investment in single-brand retail to 100% from the earlier 51%.

The government is again carrying out consultations with stakeholders like farmer associations, consumer associations and food processing industry to reach on a consensus on the issue.