Process on for consensus on FDI in multi-brand retail, says Pranab Mukherjee

The government said it is in the process of evolving a consensus on allowing 51 per cent foreign direct investment in the multi-brand retail sector.

The policy to allow foreign retailers to open outlets in India, was put on hold by the government in the wake of strong objection from opposition and its key UPA ally, Trinamool Congress.

After that, the Department of Industrial Policy and Promotion (DIPP) has started wider consultations with stakeholders, including farmers, consumers and the food processing industry.

"We have further liberalised FDI in single brand retail, and a consensus for operationalising the decision taken to open FDI in multi brand retail trading is being pursued," Finance Minister Pranab Mukherjee said while addressing annual session of Assocham.

He said that FDI flows which had considerably slowed down in 2010-11, have bounced back.

Recently, Commerce and Industry Minister Anand Sharma too has assured that the government is building a consensus on opening the multi-brand retail and it is only a "matter of time" before the decision is notified.

The USD 600-billion segment is dominated by small kirana (mom & pop) shops. The Opposition has expressed concerns that allowing majors global retailers would lead to unemployment among the unorganised sector.

Several global retailers like Walmart, Tesco and Carrefour are waiting in the wings to enter India's multi-brand retail segment. (PTI)