No FDI in the Multi-Brand Retail Sector- Nirmala Sitharaman
The minister for commerce and industry Nirmala Sitharaman soon will clarify the stand of the new government of FDI (Foreign Direct Investment). She mentioned that some sectors need money, some technology, some both. The NaMo government is open to FDI in other sectors like defence, railways and construction, however are closed to the idea of allowing FDI in multi brand retail in order to safeguard the interests of the local players.
It is not very easy for a foreign investor to enter in the Indian market due to the various requirements stipulated in the new Companies Act and it often discourages the investors. There is a herculean task in front of the Modi government as the manufacturing industry has been going through a slump and all over India’s GDP had taken a beating in the last few years.
The government is trying to take all the initiatives to revive the economy and wants to send positive signals during the budget which will be announced on July 10.
The United Progressive Alliance (UPA) government had opened the multi-brand retail sector to FDI however the Bhartiya Janta Party had strongly opposed to it when they were in opposition and their stand remains the same. FDI will be used for job and asset creation only.
Discussions are on for increasing the FDI cap in insurance to 49%. As manufacturing shrunk by 0.7% in 2013-14, she said the government is working towards simplification of regulations and compliance norms for the companies, which will ease doing business and improve investor sentiment.
Source- The Economic Times
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