Narendra Modi led NDA Government Retains 51% FDI in Multi-Brand Retail Wednesday May 13,2015

 

Narendra Modi led NDA Government has retained the previous UPA regime's decision allowing foreign retailers to open multi-brand stores with 51% ownership, in its consolidated FDI policy released on Wednesday, notwithstanding the political slugfest over the issue.

The latest edition of the annual FDI document also incorporates all policy changes effected over the past one year, including by the Modi government in sectors like defence, insurance and railways.

The 119-page new Compendium, which came into effect on Wednesday, mentions all existing FDI policy decisions as also the changes made over the past one year. These include changes in the foreign direct investment cap in defence and insurance sectors, where limits have been hiked to 49% from 26% earlier

The Department of Industrial Policy and Promotion (DIPP), which is under the Ministry of Commerce and Industry, is the nodal agency on FDI policy. It compiles all policies related to India's FDI regime into a single document to make it simple and easy for investors to understand.

Note

The multi-brand retail was opened up for foreign direct investment, with a 51% cap, in September 2012, when the Congress led UPA government was in power. 

The BJP led NDA government, which came to power in May 2014, has not made any changes in this policy. However, the BJP had opposed foreign investment in multi-brand retail sector in its election manifesto of 2014