facebook.com/Outlookindia twitter.com/outlookindia digimag.outlookindia.com instagram.com/outlookindia youtube.com/user/OutlookMagazine

'NDA Govt Will Not Entertain FDI in Multi-Brand Retail'

New Delhi
File - PTI Photo/Subhav Shukla

Clearing government stand on FDI in multi-brand retailing, Commerce and Industry Minister Nirmala Sitharaman today said the NDA government will not "entertain" foreign direct investment in multi-brand retail.

She said during Question Hour in Rajya Sabha that BJP got a massive mandate on the basis of its election manifesto which opposes FDI in multi-brand retail.

However, the government has not initiated any move to scrap the policy of allowing FDI in multi-brand retail approved by the previous UPA government.

"The mandate given to government is on the basis of our manifesto...We do not entertain FDI in multi-brand retail," she said.

She said FDI flow have not been consistent in past few years. "During the last three years FDI inflow has fluctuated. FDI inflow decreased by 26.33 per cent in 2012-13 and increased by 6.12 per cent in 2013-14," she said.

FDI flow is dependent on the business environment and how decisions are made, she said, adding FDI inflow has been skewed in favour of Mauritius.

Mauritius accounted for USD 80.809 billion out of USD 222.89 billion that came to India between 2000 and 2014.

"We are using FIPB to carry out check (on investing companies)," she said. Even in sectors where FDI is allowed under automatic route, RBI scrutinises the funds flow, she said.

RBI and Department of Revenue through FIPB takes critical look at the kind of investment coming into India, she said.

"Under the liberalised economic environment, investment decisions of investors are based on the macro-economic policy framework, investment climate in the host country, investment policies of the trans-national corporations and other commercial considerations," the Minister said. 

On the implementation of the controversial GAAR tax, which is to come into effect from next fiscal, Sitharaman said government is "working" on the issue and decision when taken will be informed to the House.

On steps taken to boost FDI, she said various set ups are in place to attract foreign investment. These include five joint commissions with Hungary, Poland, Sweden, Belarus and Libya and CEOs form with nations like Japan, France, Russia, Malaysia and South Africa.

India has also signed BIPA with 83 countries and CEPA with 9 countries, she said.

READ MORE IN:
PLACES: New Delhi
SECTION: Business
OUTLOOK 13 August, 2014
© Copyright PTI. All rights reserved. Republication or redistribution of any PTI content, including by framing or similar means, is expressly prohibited without their prior written consent.
Download the Outlook ​Magazines App. Six magazines, wherever you go! Play Store and App Store

Post a Comment

You are not logged in, please Log in or Register
  • Daily Mail
THE LATEST ISSUE
CLICK IMAGE FOR CONTENTS
OUTLOOK ON TWITTER
Quiz
Kashmir has been the scene for massive protests following the killing of Hizbul commander Burhan Wani on July 8. “Non-lethal” pellet guns used against the protesters have blinded many and 45-odd people have died in the face-off against security forces. The scale of protests have led to frayed tempers in the mainland with many resorting to high-voltage jingoism. But how well do you know Kashmir? Find out, take this quiz.
QUIZ STARTED ON: Jul 25, 2016
Advertisement