An inter-ministerial advisory panel is unlikely to endorse a proposal to allow Foreign Direct Investment (FDI) in multi-brand retail in India, according to a senior official involved in the assessment.
The advisory panel was established to report on feedback from a government discussion paper on the proposal, and according to Indian newspaper the Financial Chronicle, should table its findings early next week.
The official told the newspaper the vast majority of the responses to the government’s discussion document were from small, independent retailers and related associations, which opposed the proposal.
The document, which was issued in July of this year by the Department of Industrial Policy and Promotion, was in favour of allowing FDI in multi-brand retail, while recommending measures to protect the interests of independent retailers.
Currently India allows FDI of up to 51 per cent in single-brand retail and 100 percent in wholesale cash-and-carry operations.
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