Govt to follow FDI policy in retail business
By agencies   |   Tuesday, 25 April 2006, 19:30 IST
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HANNOVER: The on-off saga in retail FDI may see another development soon. The government is planning an alternative model to open the doors for retail FDI that would take care of domestic concerns and yet give foreign players a chance to set up shops here. Announcing this, the Commerce Minister Kamal Nath said, "We are working on alternatives.” However, he refused to spell out further details and hinted that the govt would take this issue next month. Meanwhile, Metro, the cash and carry retail chain said that it is planning to open more outlets in India. Senior officials of the company said they have had a very satisfactory experience with their Kolkata operations. They acknowledged that relaxation of the APMC regulations by state governments was important for the company to set up base in a state. The company has already invested for up gradation of farmers’ skills, especially in Karnataka. Prime Minister Manmohan Singh has told a German newspaper earlier, that there are issues in raising the FDI cap in insurance from 26 percent to 49 percent German financial sector companies are also eyeing the Indian insurance and pension market to ramp up their operations. German speakers flagged the issue of investing in the Indian financial sector at the opening ceremony of the Hannover Fair. Chancellor of Germany, Angela Merkel on Monday laid out the red carpet for Indian industry at the fair. “Indian companies are more than welcome here,” she said. Merkel said in her talks with Dr. Singh, both had stressed on the importance of a free market. She said this would make the German companies more competitive. Prime Minister Manmohan Singh has said visa and work permit problems for Indian companies are holding up Indian investments in Germany. He told the inauguration ceremony that employment taxation laws are also a big hindrance for Indian companies.

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