Industry chamber Assocham today expressed its opposition to permitting 100 per cent foreign direct investment (FDI) in the multi-brand retail sector at one go.
"...100 per cent foreign equity in multi-brand retail should not be offered to multi-national companies in a single stroke," it said, adding that the sector must be gradually opened up instead.
In a statement, Assocham president Swati Piramal said that the consequences of an action like this ought to be weighed in a caliberated manner.
It was suggested that the chamber first consult the domestic industry before finalising the entry of overseas mega malls in the country. "Consultation with the domestic players is needed before any policy announcement is made," Assocham said.
At present, the government bans FDI in multi-brand retail. While there is a cap of 51 per cent on FDI in single-brand retail, it is 100 per cent in cash-and-carry.
The Department of Industrial Policy and Promotion is expected to come out with a discussion paper on the issue soon.
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The industry body also advocated 100 per cent FDI in single-brand retail, provided the organised retail industry share rises from the present 12 per cent to 50 per cent in the retail industry.
"In a few years, the share of organised retail will be significantly higher and the country will be far more attractive and ripe for attracting higher levels of FDI," a retail player said.