Advertisement
Sunday, Sep 26, 2021
Outlook.com
Outlook.com

Trade Body Opposes 100% FDI In Single Brand Retail Without Govt Approval, Says It Violates Poll Promise Of BJP

The trade association said this was a "brutal move" on the part of the government and such a step would render a large number of people jobless.

Trade Body Opposes 100% FDI In Single Brand Retail Without Govt Approval, Says It Violates Poll Promise Of BJP
| Representative Image
Trade Body Opposes 100% FDI In Single Brand Retail Without Govt Approval, Says It Violates Poll Promise Of BJP
outlookindia.com
2018-01-10T14:56:34+05:30

A trade body on Tuesday, strongly opposed the Centre's decision to allow 100 per cent foreign direct investment (FDI) in single brand retail through the automatic route.

The Confederation of All India Traders (CAIT) said the move will facilitate easy entry of MNCs (multi-national companies) in the retail trade.

At present, FDI up to 49 per cent is allowed under automatic route but any investment beyond the limit required government approval.

The approval through automatic route is aimed at further quickening the FDI clearance process and many foreign players may now enter the Indian market this advantage of this.

In a statement here, CAIT, said "100 per cent FDI in single brand retail through the automatic route will facilitate easy entry of MNCs in the retail trade and also violate the poll promise of the BJP."

Terming it as a "serious matter for small businesses", the trade body claims the move will hamper the welfare, upgradation and modernisation of existing retail trade.

The trade association said this was a "brutal move" on the part of the government and such a step would render a large number of people jobless.

Earlier, foreign investments above 49 per cent required the government's approval along with subject to certain condition like mandatory local sourcing from micro and small and medium businesses (MSMEs).

The government, on the other hand, has pushed the proposal with a view to provide an investor-friendly climate to foreign players and in turn attract more FDI to boost economic growth, which it expects will create jobs.

After 100 per cent FDI in single brand retail was allowed in 2014, many global players like Ikea and Nike have entered the Indian market.

(PTI)

Advertisement

Outlook Newsletters

Advertisement

Read More from Outlook

7 New Faces Likely In Punjab Cabinet; 5 Amarinder Singh Loyalists May Face Axe

7 New Faces Likely In Punjab Cabinet; 5 Amarinder Singh Loyalists May Face Axe

The new Punjab cabinet comprising 15 ministers will take oath on Sunday, the state’s Chief Minister Charanjit Singh Channi announced after having deliberations with the party high command.

Quad Not A Military Alliance, But Will Challenge China's Outreach In Indo-Pacific

Quad Not A Military Alliance, But Will Challenge China's Outreach In Indo-Pacific

Quad is to checkmate China’s growing profile as a nation giving humanitarian aid to nations across Asia and Pacific, and it wants to challenge China’s soft power bid in the region.

IPL 2021: Holder Heroics Not Enough For Sunrisers Hyderabad

IPL 2021: Holder Heroics Not Enough For Sunrisers Hyderabad

Holder took three wickets then scored an unbeaten 47 but still ended up on the losing side.

Police Reforms In India Are Long Overdue But No Government Has Made It A Priority

Police Reforms In India Are Long Overdue But No Government Has Made It A Priority

Several commissions were appointed from time to time at the state and central levels for reforms in the police, but their core recommendations were never accepted.

Advertisement