No FDI in multi-brand retail in offing

Stockholm, Sept. 17: India is unlikely to allow foreign investment in multi-brand retail in the next couple of years, a top industry ministry official said.
“It’s a sensitive sector. I don’t see it happening, certainly not in one or two years,” the department of industrial policy and promotion, joint secretary, Mr Gopal Krishna, said during his interaction with Swedish industry captains.
India does not allow foreign investment in multi-brand retail, although it does permit 51 per cent foreign direct investment (FDI) in the single brand segment. The world’s biggest furniture retailer IKEA of Sweden recently dropped its $1 billion investment plan to set up single-brand retail outlets in India after New Delhi showed no inclination to allow FDI beyond 51 per cent in that segment.
“Retail is the second largest employer in India and there is a fear that opening up the sector for FDI will bring in extreme form of competition and the fears are not unfounded,” Mr Krishna said.
The commerce and industry minister, Mr Anand Sharma, along with officials from his ministry were in the Nordic country for a two-day visit. They were accompanied by the Indian industrialists led by the CII. However, he said 90 per cent of sectors are open including the entire manufacturing sector with the exception of defence.
He said the insurance bill which awaits the report of the Parliament Standing Committee is likely to be taken up by the Centre in the next six months