Press Information Bureau

Government of India

Ministry of Finance

16-March-2012 14:01 IST

Efforts to Arrive at a Broad Based Consensus on Allowing FDI in Multi-Brand Retail Trade Up to 51%

Government is making efforts to arrive at a broad based consensus in consultation with the State governments in respect of the decision to allow FDI in multi-brand retail trade up to 51%.

The Union Finance Minister ShriPranab Mukherjee in his Budget speech in the LokSabha said that at present, FDI in single brand and in cash and carry whole trade is permitted to the extent of 100%. The decision in respect of allowing FDI in multi-brand retail trade up to 51% has been held in abeyance. Shri Mukherjee said that organized retail helps in reducing cost of intermediation due to economies of scale, benefiting both consumer and producers.

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DSM/RC/SKS/44

FDI in multi-brand retail under consideration; government seeking broad consensus with states while decision remains held in abeyance. The Government is pursuing a broad-based consensus with State governments before finalising permission for FDI in multi-brand retail, and the decision to allow such FDI has been held in abeyance; by contrast, FDI in single-brand retail and cash-and-carry wholesale remain fully permitted, and organized retail is noted to reduce intermediation costs benefiting consumers and producers.