FDI in multi-brand retail, states consent requires

The Central Government is taking into consideration 51 percent FDI in political sector, as it could be diminishing the international retail process. According to the sources to apply this will require state government’s approval to open retail stores as trade becomes state matter. Wal-Mart, Metro and Carrefour like these companies are waiting from long time to invest in India that it will open its Foreign Direct Investment (FDI) in multiple brand retail industry, sources said. They added that “even after getting green signal from Central Government several states will not accept this particularly those states which are ruled by the BJP, as it will have a huge impact on their front plans.
According to the officials “Committee of Secretaries (CoS) meeting held on 15th June spear- headed by the Cabinet Secretary Ajit Kumar Seth regarding allowing FDI into political sector.” The entire CoS was having mutual consideration that FDI must be open for political sector. But CoS meeting will again held prior sending final cabinet note, committee will finalize the modes, they added.
Inter-Ministerial Group (IMG) on Inflation, led by Chief Economic Advisor in the Finance Ministry, Kaushik Basu is supporting to the Department of Industrial Policy and Promotion (DIPP) as it is raising the issue. The faction is very serious to allow FDI sooner according to them this will bridge the gap between farmers and consumers.
In the contemporary Indian market government permits only in single brand retail chains such as Nike, Louis Vuitton with only 51% whereas it allows 100% FDI in wholesale sector. There are several big companies are still seeking for state permission in multi-brand retail.

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