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The government on Thursday approved 51 percent FDI in multi-brand retail and 100 percent in single-brand, a decision that will allow global mega chains like Walmart, Tesco and Carrefour to open outlets in India.
Seen as a major boost to improve the situation of policy paralysis that continue to haunt the UPA II, the cabinet gave nod to the reformist move despite stiff opposition by its ally Trinamool Congress.
Earlier, a panel headed by Cabinet Secretary Ajit Kumar Seth had recommended 51 percent FDI in multi-brand retail with certain riders, like minimum investment of USD 100 million and local sourcing.
The decision on the issue was pending for over two-years as Opposition parties were against foreign investment in this sector. The USD 600 billion segment is dominated by small kirana (mom & pop) shops.
The opposition had expressed its concerns that allowing majors global retailers would lead to unemployment among the unorganised sector.
The government had opened the single-brand retail for FDI way back in 2006 and ever since 60 foreign players have entered the country in joint venture with local firms.
Several global retailers are waiting in the wings to enter India's multi-brand retail segment. (zeenews)
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