Multi brand retailers call for changes in FDI policy applicable to them
Updated: Jun 28, 2013 05:17:50pm
New Delhi, Jun 28 (KNN) Multi-brand retail owners in a meeting with Commerce and Industry Minister Anand Sharma have asked the government to change the Foreign Direct Investment policy applicable to them.
They called for parity along with the single brand retail for 50 per cent of the first tranche of investment in back-end infrastructure.
Multi brand retailers during the meeting were Walmart, Tesco, Carrefour, Bharti, Aditya Birla Group, Tatas, Reliance and Pantaloon.
“The objective of the policy is to encourage investments, job creation, benefit to the farmers and benefit to the consumers. Therefore, we have sufficient space to address those concerns, bring in the clarity, and an early and appropriate view will be taken so that the guidelines can accordingly be given out,” Sharma said after the meeting.
Multi brand retailers have been long asking for the same polices for them as applicable to the single brand retailers. The FDI policy requires that single brand retailers should source 30 per cent of their products to be sold preferably from small and medium enterprises while for multi brand retailers it is mandatory to source 30 per cent of products from SMEs.
Moreover multi brand retailers are only allowed 51 per cent FDI while 100 per cent FDI is allowed in single brand retail.
Recently Department of Industrial Policy and Promotion had clarified that new chain of stores will be allowed to take benefit of the investment in back end infrastructure that foreign retailers start in the country. (KNN)
They called for parity along with the single brand retail for 50 per cent of the first tranche of investment in back-end infrastructure.
Multi brand retailers during the meeting were Walmart, Tesco, Carrefour, Bharti, Aditya Birla Group, Tatas, Reliance and Pantaloon.
“The objective of the policy is to encourage investments, job creation, benefit to the farmers and benefit to the consumers. Therefore, we have sufficient space to address those concerns, bring in the clarity, and an early and appropriate view will be taken so that the guidelines can accordingly be given out,” Sharma said after the meeting.
Multi brand retailers have been long asking for the same polices for them as applicable to the single brand retailers. The FDI policy requires that single brand retailers should source 30 per cent of their products to be sold preferably from small and medium enterprises while for multi brand retailers it is mandatory to source 30 per cent of products from SMEs.
Moreover multi brand retailers are only allowed 51 per cent FDI while 100 per cent FDI is allowed in single brand retail.
Recently Department of Industrial Policy and Promotion had clarified that new chain of stores will be allowed to take benefit of the investment in back end infrastructure that foreign retailers start in the country. (KNN)
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