BJP govt retains UPA’s decision to allow 51% FDI in multi-brand retail

Even as BJP opposed opening up the multi-brand retail sector to 51% foreign direct investment (FDI) in their 2014 election manifesto, the government has retained the UPA’s decision to allow such investments in its consolidated FDI policy note.

Even as BJP opposed opening up the multi-brand retail sector to 51% foreign direct investment (FDI) in their 2014 election manifesto, the government has retained the UPA’s decision to allow such investments in its consolidated FDI policy note.

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The Department of Industrial Policy and Promotion (DIPP) released the latest edition of the annual FDI document on Wednesday, but did not make any changes with respect to multi-brand retail. “51% FDI in multi brand retail trading, in all products, will be permitted, subject to the conditions laid down in the document,” it said.

However, the document did note changes including opening up of FDI in sectors such as defence, insurance and railways.

Experts said the government’s move was a deliberate decision, which left scope for states and union territories to take their own calls on the issue. The Congree-led UPA government, has in September 2012, opened up the multi-brand retail sector to 51% FDI.

The government updates the policy every year, compiling all the changes it has made during the year.