Retail Majors Bothered Over Govt Delay in Allowing FDI in Multi-Brand Retail

Allowing foreign direct investment (FDI) in multi-brand retail is seen as one of the key reform measures that India has to offer. Though the government started the discussion process to allow foreign stake in the sector in mid 2010, it wants to play safe on the matter, even as players in the field fret over the delay, reports CNBC-TV18’s Rituparna Bhuyan and Mehak Kasbekar.

Earlier this April, Commerce Minister Anand Sharma had indicated for the first time the intent of the government to allow FDI in multi brand retail. Since then, a discussion paper released by the industry department had asked for public comments on the matter. Companies like Bharti Walmart, who feel that the government should start the process by allowing 49% FDI, are not amused by this wait.

Rajan Mittal, Chairman, Bharti Walmart said, “"The government has been able to answer my question on this. How is the colour of the money bad? Do not understand how FDI will hurt?" If pictures say a thousand words, then the visit of Sharma to a buyer-seller meet of cash and carry major Bharti Walmart on Thursday surely conveys a message. Sources say while the government is not comfortable in opening up FDI in multi-brand retail at the moment, it is not averse to the idea and wants to wait for some more time.

Sharma said, “Consultations with stakeholders is on and we will take a decision, that will be in the best interest of the country.”