Govt may allow FDI in single brand retail

By agencies   |   Wednesday, 04 January 2006, 20:30 IST
Printer Print Email Email
NEW DELHI: The Government may open up a small window for foreign direct investment (FDI) in retail by initially allowing such investments for trade in single brand goods only. A proposal to this effect is on the agenda of the meeting of Group of Ministers (GoM) where a host of FDI liberalization matters are slated to come up. In opting for FDI for single brand retail trade, the government feels that the sale of such goods would cater to a select clientele, different from those served by small retailers and the local retailers. The government feels that as the proposed new retailers would deal with a single brand, they would not replace the existing retailers. This move would also allay the apprehensions of the Left parties and the BJP that FDI in retail would mean the end of the small traders and deprive millions of their livelihood. Also on the agenda for the GoM meeting, is a proposal to allow 100 percent FDI under the automatic route for laying natural gas and LNG pipelines. Another proposal is for allowing 100 percent FDI in captive mining in power, steel and cement projects in order to facilitate large investments in these sectors. Similarly, 100 percent FDI under the automatic route for power trading is also to be considered. Another proposal is to allow 100 percent FDI under the automatic route for exploration and mining of precious stones.