News: Further liberalisation of FDI in retail on track

(PTI 09/02/2007) New Delhi - Measures to further liberalise Foreign Direct Investment (FDI) in specific sectors in retail, like electronics, stationery and sports goods, are likely to stay on course despite the recent storm over Congress President Sonia Gandhi's letter to Prime Minister Manmohan Singh on Wal-Mart.

This was indicated on Friday by Commerce and Industry Minister Kamal Nath here.

When asked whether the recent controversy on Gandhi's letter over Wal-Mart would be a set back for opening new retail sectors to FDI, he replied in the negative.

The Department of Industrial Policy and Promotion had already floated a proposal for liberalisation of FDI regime in specific sectors of retail because the move would not any impact neighbourhood kirana stores.

All through the controversy the DIPP has maintained that no regulations have been breached with regard to Bharti-Walmart joint venture.

Government regulations allow 100 per cent FDI in cash and carry through automatic route and 51 per cent in single brand. Besides, the franchise route is available for big operators.