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Planning Commission favors FDI in Retail sector
By agencies
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Wednesday, 06 April 2005, 19:30 IST
NEW DELHI:Notwithstanding reservations from the UPA's Left Front partners, the Planning Commission today recommended FDI in the Retail sector on the ground that such decisions were necessary to build "backward supply linkages".
"The mid-term appraisal (MTA) has made a case for opening up of the retail sector for foreign investment to improve backward supply linkages," Planning Commission Deputy Chairman Montek Singh Ahluwalia said.
Evading a direct reply when asked whether the Left-leaning Members of the Commission would support it in favoring FDI in the Retail and Aviation sectors, Ahluwalia cited the Chinese example and said the Communist state had done "exceptionally well" in the retail sector and India could also do it.
However, he said the Commission had made a case for it and now it was up to the Cabinet to accept its recommendations on the matter.
"What we have said is that FDI in retail should be considered by the Government and I think it should be considered. If at all it is rejected, we will study on what basis it has been rejected," he added.