FDI In Retail In 3 Phases: Consumer Electronics, Sports Goods May Be First
It was earlier reported that foreign direct investment in retail may be allowed in three phases so that the opposition to the policy can be minimised. Moving ahead with that line of thinking, the government is considering allowing FDI in consumer electronics and sports goods in the first phase. These are sectors which will not affect a large number of local retailers and the political opposition to such a step is unlikely. This may be allowed much before the Commonwealth Games in 2010, says a report in The Economic Times. As of now, FDI is not allowed in multi-brand retail outlets, while single brand outlets can have 51 per cent FDI.
The government is also considering hiking the FDI limit in single brand outlets to 100 per cent in the second phase. Depending on the impact of the first two phases, the government would consider allowing FDI in the sensitive area of multi-brand retailing, says ET, quoting sources in India’s Commerce and Industry Ministry which looks after FDI into India. Hectic discussions are on among policymakers in Udyog Bhawan for letting foreign investors into the retail sector, it added.
