Prime Minister Manmohan Singh is understood to have asked Commerce Minister Kamal Nath to prepare a note for the cabinet to allow foreign direct investment (FDI) in retail business for stationery, electronics and sports goods that do not affect small and neighbourhood shop owners.According to sources, the direction came after Nath broached the subject with the Prime Minister recently.Nath confirmed that the government was looking at allowing FDI in retail areas like sports goods, stationery, construction material and electronics.Sources said the commerce ministry has already taken up the matter with the consumer affairs ministry.At present, FDI up to 51% is allowed only in single brand retail with prior government approval. Up to 100% FDI is allowed in wholesale cash-and-carry operations.
