Government Mulls Higher FDI In Retail Of Sports Goods, Electronics & Building Equipment
If the government has its way, the foreign direct investment policy in retail may see some changes. The department of industrial policy and promotion (DIPP) is preparing a detailed policy for further liberalisation of FDI in the country, reports The Economic Times. This is likely to be announced before the Union Budget in end February.
The new policy may allow a higher FDI in sectors that do not directly affect the smaller domestic retail companies. They may be sports goods, electronics and building equipment. These sectors may be allowed a higher FDI cap of 51 per cent.
Currently the government permits 51 per cent FDI in single-brand retail through FIPB. For multi-brand, there is 100 per cent FDI in cash-and-carry through the automatic route.
Now the tough part is convincing the traders’ association, BJP and the Left parties.
