The existing policy allows for 51 % FDI in only single brand retail subject to specified conditions. Government has received suggestions from associations /trade bodies for allowing FDI in multi brand retail.  The objective is to enhance the operational efficiency of back-end infrastructure in the retail sector, reduce wastage in the agricultural sector, enhance benefit to producers, integrate the retailer in the value chain, and benefit consumers through greater competition. Towards this end, the Department of Industrial Policy and Promotion has released a Discussion Paper on the subject of 'Foreign Direct Investment in Multi-Brand Retail Trading', with the aim of generating informed discussion on the subject and obtaining the views and comments of various stakeholders. The views received on the paper are being examined by an inter ministerial committee.

            The GDP of trade over the last three years is as follow:

Source: NAS, 2010 pp 14-19          

            This information was given by Prof. K.V. Thomas, Minister of State for Agriculture, Consumer Affairs, Food & Public Distribution, in written reply to a question in the Lok Sabha today.

FDI in multi-brand retail under examination following a Discussion Paper and stakeholder consultation for regulatory reform. Existing policy permits foreign direct investment up to fifty-one percent only in single-brand retail subject to conditions. Proposals to permit FDI in multi-brand retail aim to strengthen back-end infrastructure, reduce agricultural wastage, integrate retailers into the value chain, benefit producers and increase consumer competition. The Department of Industrial Policy and Promotion issued a Discussion Paper to solicit stakeholder views, and those responses are being examined by an inter-ministerial committee as part of a consultative regulatory process.