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Retail FDI nod likely to come with stiff condition
10 May 2010: The Department of Industrial Policy and Promotion (DIPP) is likely to allow FDI in multi brand retail only if global retailers invest heavily in the back-end infrastructure like warehousing and cold storage.
The Department of Industrial Policy and Promotion (DIPP) will soon come up with concept papers on relaxing norms for FDI in different sectors including multi-brand retail.
The paper on FDI in retail may include a provision that global retailers interested in opening multi-brand stores in the country will have to put in a significant part of their investment in the back-end infrastructure, according to sources.
Presently, FDI is not allowed in the multi-brand retail sector, which is dominated by the neighbourhood kirana stores and is a politically-sensitive topic. However, foreign players are permitted in wholesale trade as also single-brand, high-end retail.
Source: Economic Times