News: 'Indian govt yet to frame policy on FDI in retail'

(PTI 23/05/2006) New Delhi - Allaying fears of Left parties and Opposition BJP that FDI in retail would open flood gates to foreign companies, Commerce and Industry Minister Kamal Nath today said Government had not framed any policy yet.

Replying to a short duration discussion in the Rajya Sabha on FDI in retail sector, Nath said "there is no policy which we have framed. We have not agreed to opening up of the sector."

Observing that there was presumption in the House that Government had already made up its mind and put FDI in retail on fast track, he said Government was yet to find a model of FDI in retail which did not replace or displace existing employment but generate additional employment.

"We are looking at various models. Till now, we have all the bargaining chips in our hand. We have not committed any thing on retail at the World Trade Organisation in our offer on services," he said.

Government was committed to objectives laid down in the CMP relating to investment creation, technology up gradation and employment generation. Pointing that FDI in retail did not mean imports, Nath said after liberalisation goods can be freely imported after paying the customs duty.

However, he remained non-committal to demands by members that as and when the Government has a policy it will take the House into confidence before taking any decision. He said all aspects have to be taken into account.