To allay fears of groups opposing opening of multi-brand retail sector to FDI, the industry ministry has decided to start a process of comprehensive consultation with stakeholders, including traders and farmers. “We have the policy (for FDI in multi-brand retail) in place. We will explain to them (stakeholders) and consider their suggestions to improve policy,” a senior official in the Department of Industrial Policy and Promotion (DIPP) said.
The policy to allow 51 per cent foreign direct investment (FDI) in multi-brand retail, that would have permitted global retailers like Walmart, Tesco and Carrefour to open outlets in India, was put on hold by the government in the wake of strong objection from opposition BJP and its key UPA allies, Trinamool Congress and DMK, and several state governments.
When asked about the possible time period to complete this exercise, he said, “The process will take time and I can not give the exact timeline.”
Bowing to intense pressure from within and outside, the government last week announced suspension of its decision to allow 51 per cent FDI in multi-brand retail. The issue had held up Parliament for more than week.
The breakthrough in the standoff came at an all-party meeting, during which Finance Minister Pranab Mukherjee announced that the government’s decision to put the Cabinet decision on hold.
Traders and opposition parties said allowing foreign retailers in Indian would lead loss of jobs for crores of people.